India sets 2026 health agenda: Drug quality, innovation, TB and obesity take centre stage
The Indian government plans to enhance drug quality and digital health by 2026, with a focus on good manufacturing practices. The pharmaceutical market is expected to expand significantly, but small manufacturers face challenges in compliance and capital investment.
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NEW DELHI: India is pushing to upgrade its image from the 'pharmacy of the world' to a global life sciences hub, a goal that faces critical execution risks, especially concerning quality standards and policy follow-through. The government's roadmap for 2026 mandates stringent drug quality and the scaling up of digital health, setting the stage for a five-year phase of execution.
The market size of the industry is currently $11 billion, accounting for 1.5% of the global market, according to the government's 'Invest India' portal that facilitates investments. This is expected to grow to $50 billion by 2030.
Experts and industry stakeholders emphasized that the immediate test of India's commitment is the implementation of revised good manufacturing practices (GMP). These norms, aligned with World Health Organization standards, become compulsory for small pharmaceutical companies—those with a turnover of less than ₹250 crore—starting 1 January 2026. Companies that do not comply could be shut down. (Lobbying is on to extend this deadline but a decision has not been taken by the government.)
“Smaller manufacturers will need to invest in upgraded facilities... Yet, these changes are necessary to reduce operational risks, minimize recalls and ensure consistent product quality," said Parag Bhatia, director of Laborate Pharmaceuticals, a maker of generic medicines in Panipat, Haryana. The concern remains, however, whether the large number of small units in India have the wherewithal, both financial and technical, to do so, he added.
R&D allocation
Dr. Aashish Chaudhry, managing director of Aakash Healthcare Pvt Ltd, said GMP certification for pharma will be as critical as fire compliance certification for hospitals—without which operations cannot run.
The push for drug quality is coupled with a significant shift toward innovation, highlighted by the Promotion of Research and Innovation in Pharma-MedTech Sector (PRIP) scheme, which allocates a substantial ₹4,200 crore for research and development.
Sudarshan Jain, secretary-general of industry lobby Indian Pharmaceutical Alliance, noted that the goods and services tax reforms and wider implementation of GMP norms will reinforce India’s ambitions.
“The rollout of PRIP has received a strong response, marking a significant beginning for the innovation agenda," Jain said. “The next 25 years will be shaped by innovation, quality and access, which is crucial as drugs worth over $300 billion lose exclusivity globally soon."
The challenge now is to translate policy signals into ground-level R&D investment and output. Himanshu Baid, managing director of Poly Medicure Ltd, a New Delhi-based manufacturer of medical devices, urged the government to sustain the policy intent in the med-tech space. The sector must shift from being a manufacturer to an innovator of advanced med-tech solutions before it can secure global market share.
Public health failures, emerging threats
The main focus of the 2026 health roadmap includes expanding the Ayushman Bharat insurance scheme, scaling up digital health services, and strengthening digital records and telemedicine. However, several critical public health goals are currently off-track.
Tuberculosis challenge: India accounts for an estimated 26% of the global tuberculosis (TB) burden. TB incidence and mortality rates have reduced in 2023 from levels in 2015. The government has extended its TB elimination target from 2025 to 2030, in line with the United Nations Sustainable Development Goal (SDG) 3, which focuses on good health and well-being.
According to the India TB Report 2024, the country reported 2.6 million new cases and 321,095 deaths in 2023. To meet the revised goal, the National TB Elimination Programme (NTEP) continues to accelerate case detection and strengthen treatment regimens nationwide.
Obesity and weight loss: Obesity has emerged as a major public health challenge. A study by the Indian Council of Medical Research projected a surge in overweight and obese adults to 449 million by 2050 from 180 million in 2021.
The recent launch of weight-loss drugs such as semaglutide offers a market-based solution. However, Aakash's Dr. Chaudhry cautioned that long-term benefits are uncertain.
“When you take a weight-loss drug, one has to do muscle training and have a high-protein diet. So, the future is very uncertain and whether the weight-loss drugs are sustainable or not," he said.
Pollution: Grappling with one of the most severe global air pollution crises, the Centre has called on states and Union Territories to come up with a robust public health response, including setting up specialist clinics in the 131 cities that have failed to meet ambient air quality standards for five years.
Digital healthcare: AI and advanced technology are seen as key accelerators, as noted by Bharath Sesha, managing director at Philips for the Indian subcontinent. The integration and effective use of these technologies across India's often resource-strapped healthcare infrastructure will be a daunting logistical challenge.
As healthcare providers adopt generative AI for documentation and diagnostics, the focus will be on establishing transparent, expert-validated AI systems.
Overall, experts said 2026 will be a defining year where the government must prove its ability to execute its quality agenda while addressing major public health failures and funding true innovation.
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