Pharma Market Grows Despite Distributor Hesitation Post-GST Revision

Pharma Market Grows Despite Distributor Hesitation Post-GST Revision

The Indian Pharmaceutical Market (IPM) recorded robust growth in September, even as a section of distributors temporarily curtailed purchases following the government’s GST rate revisions.

Key Growth and Market Dynamics

• Overall Market Growth: The Indian Pharma Market registered a growth of 7.3% in September 2025.
• GST Impact on Distributors: Despite the overall growth, the article notes a dip in distributors’ purchases. This temporary slowdown was observed as distributors held back on buying new stock in anticipation of or in response to the announced GST rate revisions and rationalization, aiming to manage inventory and transition to the new tax regime (GST 2.0).
• Pharma Products Benefit: The overall positive growth indicates strong underlying consumer demand, likely driven by the fact that many life-saving drugs and medical devices have seen their GST rates reduced or exempted, leading to improved affordability and higher consumption volumes at the retail level.
• Segment Performance: The market growth was primarily driven by strong sales volumes across major therapeutic segments, suggesting that the supply chain adjustments by distributors were temporary.