How Indian Pharma Is Building a Sustainability Framework for a Greener Future

The Indian pharmaceutical industry remains a cornerstone of India’s economy, with a projected growth of 12.2% CAGR (2024-2032) and a projected market value of $ 156.25 billion by 2032. As the industry evolves to tackle complex global challenges, organisations are increasingly recognising the need to change their ‘business as usual’ approach and adopt sustainability as a strategic imperative.  

By making tactical investments in large-scale renewable/green energy infrastructure, pharma companies can build long-term resilience and competitive advantage, becoming a vital partner in India’s effort to turn net zero by 2070. It is thus in the process of redefining its energy and supply chain dynamics by designing a sustainability strategy that aligns with the United Nations Sustainable Development Goals (SDGs). This is an age where the industry is poised to set new global benchmarks in future-proofed healthcare manufacturing.

Decarbonising the Energy Mix and Supply Chains

The Indian pharma sector, long reliant on conventional grid-based energy, is now embracing a holistic transition to green energy, integrating solar and wind power as primary levers to cut emissions. However, the shift extends beyond these well-established solutions as manufacturers increasingly explore innovative alternatives and green chemistry principles to embed sustainability into their operations further. 

For example, technologies such as steam generation from agricultural waste and biomass boilers offer an efficient alternative to traditional energy generation methods. The adoption of low-sulphur heavy stock (LSHS) as an alternative fuel source also demonstrates the industry's commitment to reducing emissions while maintaining operational efficiency. Two key statistics highlight the emissions profile in Indian healthcare: India’s healthcare sector accounts for only 2% of total global healthcare-related emissions; second, supply chain operations dominate these emissions, accounting for 81% of the sector's total carbon footprint, including pharmaceutical operations. Hence, decarbonising the supply chain is essential, requiring organisations to collaborate with suppliers and partners to reduce carbon emissions across the value chain. 

Water Stewardship and Conservation

With water having become a scarce resource, operations management continues to evolve toward more efficient and sustainable practices. Innovations in manufacturing processes, such as optimising tablet coating with purified water instead of solvents, have demonstrated both environmental and cost benefits. At the same time, rainwater harvesting has been instrumental in supplementing local water resources. Comprehensive wastewater treatment and reuse protocols also play a crucial role in ensuring efficient water utilisation. Advanced recycling infrastructure, incorporating multi-stage water reuse systems, has the potential to significantly lower freshwater dependency. 

Another pressing challenge is addressing antimicrobial resistance (AMR), which necessitates responsible manufacturing practices and stringent waste management protocols. Careful monitoring of waste, particularly the environmental impact of Active Pharmaceutical Ingredients (APIs), is essential to prevent unintended antibiotic discharge into water bodies and ecosystems. 

Additionally, closed-loop water management systems, which enable treatment, purification, and recirculation within facilities, continue to set benchmarks for responsible water stewardship while maintaining stringent environmental standards.

Climate Risk Mitigation  

With manufacturing hubs in India increasingly exposed to climate risks, such as cyclones, rising sea levels, and extreme temperature fluctuations, building operational resilience has become imperative. Strengthening infrastructure resilience through comprehensive risk assessments and adaptive manufacturing protocols forms the backbone of effective climate adaptation.

Product Sustainability and Circular Economy

The pharmaceutical industry is advancing towards healthcare innovations that minimally impact the environment. For example, respiratory ailments are on the rise globally, with a significant number of patients suffering from chronic obstructive pulmonary disease (COPD) and asthma. Pressurised metered dose inhalers (pMDIs), currently used for COPD and asthma treatment, employ propellants with high global warming potential. The industry is prioritising the development of respiratory inhalers using propellants with near-zero global warming potential. This innovation will provide patients with pMDIs that maintain equivalent efficacy and safety while significantly reducing their environmental impact.

Additionally, a circular approach to product and packaging design unlocks new economic opportunities while reducing carbon footprint. Sustainable packaging innovations, including biodegradable materials and optimised carton sizing, are thus playing a key role in reducing the industry’s environmental impact while maintaining product integrity. Conducting thorough product lifecycle assessments also offers valuable insights into optimising resource use, minimising waste and enhancing material recovery. 

The Indian pharmaceutical industry is embracing sustainability as a strategic advantage, driving both innovation and long-term resilience. With increasing interest and investments in renewable energy, circular economy practices, product sustainability and responsible supply chain management, the industry is demonstrating that environmental responsibility and business success can go hand in hand while reinforcing India’s leadership in global healthcare. 

The author is Executive Director, Global CFO & Head of API+, Sustainability and IT at Lupin. (Views expressed are personal)