FDI and Indian Pharma: A Study of Economic Revival and Growth Post-COVID-19

Abstract

India's pharmaceutical sector is a global hub for affordable generic medicines, playing a crucial role in healthcare accessibility. This study examines Foreign Direct Investment (FDI) trends in the Indian pharmaceutical industry, assessing its impact, particularly in the post-COVID-19 era. The findings reveal that while the pandemic initially disrupted FDI inflows, the sector has demonstrated resilience, recovering to pre-pandemic levels. Government initiatives such as Pharma Vision 2020 have significantly influenced FDI by promoting affordability, quality, and sustainable growth. The study highlights India's competitive advantages, including low production costs and a strong generic drug market, positioning it favorably compared to other countries. Despite fluctuations in FDI inflows from 2013 to 2024, the sector shows overall growth. Challenges like regulatory barriers and pricing policies persist, but opportunities in innovation and market expansion remain strong. The study underscores the importance of strategic policies in sustaining FDI-driven growth and technological advancements in the Indian pharmaceutical industry.