Obesity and diabetes medicines are emerging as key growth drivers in India’s pharmaceutical market, helping fuel the industry's strongest expansion in more than two years.

The Indian Pharmaceutical Market (IPM) grew 12.1% year-on-year in May, marking the sixth consecutive month of double-digit expansion, according to IQVIA data analysed by Equirus Securities. On a moving annual total (MAT) basis, the market expanded 10.7%, compared with 7.7% a year ago, supported by prescription growth, price increases, and new product launches.

The anti-diabetic segment grew 14.5% in May and continued to gain share in the domestic market. “Mounjaro and combinations remained key growth drivers in the anti-diabetic segment,” Equirus analysts Kunal Dhamesha and Riya Karia said in a report.

Chronic therapies, which include treatments for diabetes, cardiovascular diseases and other long-term conditions, accounted for 40.6% of the market in May and grew 14.6%, outpacing the overall industry.

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Cardiac therapies remained the largest segment of the market, accounting for 13.5% of sales on a MAT basis and recording growth of 14.7%. Anti-diabetic therapies also continued to gain share as demand for chronic disease treatments increased.

"Growth was driven by a combination of volume expansion, price increases and new product introductions," the analysts said. Volume growth contributed 3.2%, while pricing and new launches added 4.6% and 3%, respectively.

The momentum was not limited to chronic therapies. Acute therapies also recorded their strongest growth in the current series, expanding 8.3% in May. Respiratory medicines grew 10.9%, while anti-infectives expanded 8.1%.

"Nine out of ten key therapies reported double-digit growth during the month," Dhamesha and Karia said, pointing to broad-based demand across the domestic market.

Among pharmaceutical companies, Lupin led growth in the domestic market with a 17.4% increase in May, followed by Torrent Pharmaceuticals at 15.1% and Cipla at 14.2%. Sun Pharma, India's largest drugmaker, reported growth of 14.1%, supported by its cardiac, anti-diabetic and respiratory portfolios.

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Indian companies, which account for nearly 83% of the market, grew 11.9% in May, while multinational drugmakers expanded 13.3%, according to the analysis.

The composition of the pharmaceutical market is also changing. Gastrointestinal therapies have overtaken anti-infectives to become the second-largest therapy area, while chronic disease treatments continue to account for a growing share of prescriptions, the report indicated.

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Published on: Jun 17, 2026 4:29 PM IST