US pharma giant Eli Lilly to invest over $1 billion in India — Here’s what it means

US-based pharmaceutical giant Eli Lilly is set to invest more than $1 billion in India in the coming years to boost its manufacturing and supply capacity by partnering with local drugmakers.

The move is a strategic bid to tap into India's skilled workforce and strengthen the expansion of Lilly's global manufacturing network. Reuters reported that the drugmaker also introduced its blockbuster weight-loss drug Mounjaro in India earlier this year.

What does it mean for India?

The firm currently does not operate its own manufacturing facility in the country, which is a key hub for several companies that develop and produce complex drugs, vials and injectables for larger pharmaceuticals on a contract basis.

The collaborations are designed to increase the availability of Lilly's key drugs, including those for obesity, diabetes, Alzheimer's, cancer and autoimmune conditions, the company said.

"We are making significant investments to increase manufacturing and medicine supply capacity around the world," Patrik Jonsson, president of Lilly International, said, adding, India is a hub for capability building within its global network.

Why is the drugmaker investing in India?

Lilly's investment plans in India come as many global drugmakers rush to increase US manufacturing capacity. This push is driven, in part, by the Trump administration's recent imposition of a 100% tariff on imported branded and patented drugs from October 1, 2025.

Just last month, Lilly announced a $5 billion investment in a new facility in Virginia, part of a $27 billion expansion plan to construct four new plants in the United States over the next five years.

The drugmaker is now preparing to face increased competition from India's generic drugmakers, who are racing to launch cheaper versions of the famous weight-loss drug Wegovy once its main chemical ingredient, semaglutide, goes off patent next year.

The launch of Mounjaro, alongside Danish drugmaker Novo Nordisk's Wegovy, has increased awareness among people of obesity treatments in a country projected to have the world's second-largest obese population by 2050. Sales of both of these drugs doubled within months of their launch, Reuters reported.

Lilly to open a facility in Hyderabad

Separately, as part of the company's expansion, Lilly is establishing a dedicated manufacturing and quality facility in Hyderabad. This new hub will expand the company's presence beyond the city's global capability centre.

The new hub's primary functions include overseeing the firm's entire contract manufacturing network in India and providing crucial technical capabilities.

Lilly plans to immediately begin recruitment for the new site, seeking talent across roles including engineers, chemists, analytical scientists, quality control and assurance experts and managers, the company told Reuters.