Sector profile

Pharma & medical devices

India supplies generic medicines to over 200 markets. Uttar Pradesh has a dedicated pharma policy with a special package for bulk drug and medical device parks. This page covers export data from the Department of Commerce and the state incentives.

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Front of a Jan Aushadhi generic medicine store in Bengaluru — Photo: Gpkp via Wikimedia Commons, CC BY-SA 4.0

Importance to the Indian economy

India's pharmaceutical exports rose from US$ 27.85 billion in 2023-24 to US$ 30.47 billion in 2024-25 and US$ 31.12 billion in 2025-26 (DGCI&S data, Department of Commerce reply in the Lok Sabha).

As per the Department of Commerce, India ranks third globally in pharmaceutical production by volume and more than 60% of its pharma exports go to stringent regulatory markets. Meeting those quality standards is a key cost in any new unit, which is why the UP policy reimburses certification and patent costs.

The last three years in official data

Figures as published by the Government of India source linked against each year. We do not estimate or fill gaps.

India's pharmaceutical exportsUS$ billion

2023-24

US$ 27.85 bn

2024-25

US$ 30.47 bn

2025-26

US$ 31.12 bn

Bars start at zero and are scaled to the largest value shown.

Year	Value (US$ billion)
2023-24	US$ 27.85 bnSource: Department of Commerce, Lok Sabha Starred Q. 231, 4 Aug 2026 (DGCI&S)
2024-25	US$ 30.47 bnSource: Department of Commerce, Lok Sabha Starred Q. 231, 4 Aug 2026 (DGCI&S)
2025-26	US$ 31.12 bn (provisional)Source: Department of Commerce, Lok Sabha Starred Q. 231, 4 Aug 2026 (DGCI&S)

Other official data points

Markets: more than 60% of exports go to stringent regulatory markets; the US takes 34% and Europe 19%. Source: PIB, 21 Feb 2026 (PRID 2231234).

What is not shown, and why: A three-year official series on domestic pharma output (GVA) was not verified, so exports are used as the indicator.

UP incentives for this sector

The Uttar Pradesh policy that applies to this sector, with the main incentives as stated in the policy or on Invest UP. Rates, caps and eligibility conditions are summarised; the policy text and its guidelines decide each case.

In force

UP Pharmaceutical & Medical Device Policy 2023

Validity not stated on the Invest UP page; confirm before applying

Incentive	Support (as per the policy)
Capital subsidy	15% of investment, up to ₹200 crore, in 5 annual instalments
Interest subsidy	5% a year for 5 years on plant & machinery loans, up to ₹1 crore a year; additional 2% a year for 7 years in Bundelkhand and Purvanchal
Duties	100% electricity duty exemption for 10 years; 100% stamp duty exemption
Quality and IP	75% of ISO and 50% of BIS certification costs; 100% of domestic and 50% of international patent filing costs
Bulk drug / medical device parks	Special package, including interest subsidy for 10 years

Source: Invest UP policy page

Applicable across sectors. A manufacturing project of ₹50 crore or more can also be evaluated under the UP Industrial Investment & Employment Promotion Policy 2022 (valid to 3 Nov 2027), and an MSME unit under the UP MSME Promotion Policy 2022. As a rule only one state policy can be used for the same investment, so compare the sector policy with these general policies on your own numbers before applying. Central schemes can often be combined with state support: see subsidy stacking.

Industrial compliance support

Sources

Scheme terms change; verify on the official portal; last checked 4 Oct 2026. This page is general information for planning, not a guarantee of eligibility, sanction or disbursement. See our Terms of Use & Disclaimer.

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