Strategic Innovation Investments by Multinational Drugmakers to Boost India’s Pharmaceutical Sector

Multinational drugmakers are establishing technology centers in India, leveraging its digital strengths for global operations. Investments like Amgen’s $200 million in Hyderabad aim to enhance R&D and innovation in pharmaceuticals.

Key View

• The establishment of technology and innovation centers in India by multinational drugmakers signals a strategic shift towards leveraging India’s strengths in digital capabilities to support global operations.
• Ongoing public sector efforts will support India’s pharmaceutical market growth.
• The innovation centres will help catalyse domestic R&D innovation; however, long-term sustainability will depend on development of local talent and research infrastructure. 

The establishment of technology and innovation centers in India by multinational drugmakers signals a strategic shift towards leveraging India’s strengths in digital capabilities to support global operations. On February 24 2025, Amgen announced a USD200mn investment to establish a new technology and innovation center in Hyderabad, India. This facility aims to enhance Amgen’s digital capabilities using artificial intelligence and data science to boost its pipeline of medicines. Amgen India will be important in driving innovation by developing and deploying technology and life sciences solutions to enhance Amgen’s digital capabilities globally. Hyderabad, the capital of Telangana, has emerged as a prominent pharmaceutical hub in India, attracting global pharmaceutical companies and investors. Hyderabad’s pharmaceutical is significantly complemented by Genome Valley, which is India’s largest systematically planned life sciences manufacturing cluster. Amgen’s announcement follows Eli Lilly’s inauguration of the Lilly Capability Center India (LCCI) in Hyderabad in January 2025. The centre will focus on expanding automation, artificial intelligence (AI), software product engineering and cloud computing to support Eli Lilly’s global operations. Hyderabad is already home to companies like Bristol Myers Squibb, Roche, Bayer, Thermo Fisher Scientific and Sandoz. As such, India’s position as a hub for life sciences and technology innovation in the Asia-Pacific (APAC) region is set to strengthen, with significant investments from global pharmaceutical companies.

India’s pharmaceutical sector stands at a pivotal juncture as multinational drugmakers increasingly recognize the country’s potential for strategic innovation investments. This shift promises to enhance the industry’s global competitiveness and bolster its position as a leading hub for pharmaceutical manufacturing and research. With its rich pool of scientific talent and established infrastructure, India offers a fertile ground for multinational companies to develop and commercialize new drug technologies.

Investments from these global giants will enable Indian pharmaceutical companies to adopt cutting-edge technologies such as artificial intelligence, personalized medicine, and advanced biological manufacturing processes. These innovations not only streamline drug development but also improve patient outcomes by delivering more targeted therapies. Moreover, the collaboration between local firms and multinational players could lead to knowledge transfer, fostering an environment of continuous improvement and research excellence.

As India strengthens its regulatory frameworks and intellectual property protections, the attractiveness of its pharmaceutical landscape will only grow. Multinational investments will not only stimulate economic growth but also enhance access to affordable medicines, ensuring that India remains a vital player in the global healthcare ecosystem. Ultimately, this influx of innovation-driven capital is set to transform India’s pharmaceutical sector, paving the way for breakthroughs that benefit patients both locally and worldwide.

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