The Indian pharma sector recorded remarkable growth in June 2025. According to industry reports, the Indian Pharmaceutical Market (IPM) experienced an 11.5 percent year-on-year increase during the month. This growth was primarily driven by the b performance of the respiratory, cardiac, Central Nervous System (CNS), and pain therapy segments.
These therapy segments all performed significantly better than the industry average. Moreover, the changing weather patterns led to an increase in demand for acute medications, further boosting the market.
Faster Growth Than Last Year and Previous Month
In comparison, the IPM growth in June 2024 was 7 percent, while a 6.9 percent increase was observed in May 2025. This indicates that the June figures this time were considerably better than the previous months and the previous year.
This information was provided in a report released by Motilal Oswal Financial Services on July 16, which detailed the primary reasons behind the pharmaceutical market's growth.
Increased Demand for Acute Therapies Due to Weather Changes
The acute therapy segment saw an 11 percent growth in June 2025, a substantial improvement compared to 7 percent the previous year and 5 percent in May 2025. The rising sales of anti-infective drugs were a major contributor to this growth.
A significant factor was the surge in demand for acute medications due to seasonal illnesses like fever, coughs, colds, and viral infections during June.
Growth Driven by Drug Prices, New Launches, and Demand
Of the total IPM growth in the last 12 months, 4.2 percent was due to the increase in drug prices. Additionally, 2.3 percent growth came from new product launches, and 1.5 percent growth was attributed to drug demand, or volume.
The industry recorded an 8 percent annual growth based on Moving Annual Turnover (MAT), reflecting the pharmaceutical market's steady but robust progress.
Domestic Companies Dominate, MNCs Lag Behind
Indian pharmaceutical companies outperformed multinational corporations (MNCs) in June 2025. According to the report, domestic companies grew by 11.6 percent, while MNCs recorded a growth of 11.2 percent.
The share of Indian pharma companies in the IPM has now reached 84 percent. This shows that domestic companies are consistently strengthening their position and growing faster than MNCs.
Which Drugs Showed the Fastest Growth?
A significant surge in demand for anti-infective drugs was observed in June 2025. Furthermore, sales increased considerably in the pain therapy (pain relief), cardiac therapy (heart-related medications), and CNS (mental health) segments.
Dermal (skin-related) and gastrointestinal (digestive) drugs also neared double-digit growth.
General Medicine and Super Specialty Both Provided Strength
Sales of super specialty drugs, along with general medicine, also saw an increase in June. The demand for drugs remained stable in both urban and rural areas.
The report stated that active interactions between medical representatives and doctors, along with increasing health awareness, led to a greater seriousness towards treatment among patients, which also accelerated drug consumption.
Positive Signs for Drug Companies
The domestic companies' share in the IPM and the rising demand clearly indicate that the country's pharma manufacturers are successfully meeting the market's needs.
Another significant point is that companies are not only focusing on selling drugs but are also emphasizing research and innovation, leading to the entry of new and effective products into the market.
The Market's Eyes Now on the Coming Months
Having observed the growth in June 2025, the industry is now focused on the performance in July and August. Considering the monsoon and the infection season, the demand for acute and anti-infective segments is expected to remain b in the coming months.
