Eli Lilly and Company announced plans to invest more than $1 billion over the next several years in contract manufacturing partnerships across India, marking a significant expansion of the company’s global manufacturing footprint and its commitment to the country’s pharmaceutical sector.
The Indianapolis-based drugmaker will partner with local contract manufacturers to boost production and supply capacity for key medicines across its portfolio, including treatments for diabetes, obesity, Alzheimer’s disease, cancer, and autoimmune conditions. The investment aims to leverage India’s skilled workforce and established contract manufacturing infrastructure to support Lilly’s growing global demand.
New Hyderabad Manufacturing and Quality Hub
Alongside the contract manufacturing investment, Lilly will establish a new manufacturing and quality presence in Hyderabad, Telangana. The facility will serve as an oversight hub for the company’s contract manufacturing network across India and provide advanced technical capabilities.
Recruitment for the Hyderabad site will begin immediately, with openings for engineers, chemists, analytical scientists, quality control and assurance professionals, and management positions. The new hub will expand Lilly’s presence in the southern Indian city beyond its existing global capability center.
“We are making significant investments to increase manufacturing and medicine supply capacity around the world to help ensure patients have access to the medicines they need,” said Patrik Jonsson, executive vice president and president of Lilly International. “Working with trusted contract manufacturers expands our capabilities to deliver life-changing medicines at greater scale — with quality always at the core. This investment reaffirms our confidence in India as a hub for capability building within our global network.”
Strategic Timing Amid Global Manufacturing Shifts
The announcement comes as global pharmaceutical companies reassess manufacturing strategies following recent U.S. policy changes. The Trump administration imposed a 100% tariff on imported branded and patented drugs effective October 1, prompting drugmakers to accelerate domestic U.S. manufacturing capacity.
Last month, Lilly announced a $5 billion investment in a new Virginia facility, part of a broader $27 billion expansion plan to build four new U.S. plants over the next five years. Since 2020, the company has committed more than $55 billion to build, expand, and acquire facilities in the U.S. and internationally.
Lilly currently does not operate its own manufacturing facility in India but is actively engaging with contract manufacturers in the country. The company did not disclose specific manufacturing partners or facility locations.
India’s Growing Role in Global Pharma Supply
India has emerged as a critical hub for pharmaceutical contract manufacturing, hosting numerous firms that develop and manufacture complex drugs, vials, and injectables for larger pharmaceutical companies. The country ranks third worldwide in pharmaceutical production by volume and is the largest provider of generic medicines globally, accounting for 20% of global generic supply by volume .
India’s pharmaceutical industry has demonstrated robust growth, with exports reaching $28.5 billion in fiscal year 2024-25, representing 9% year-over-year growth and exceeding the global average pharmaceutical export growth rate of 5% (Source: SV Healthcare). The country’s competitive advantages include low manufacturing costs, a highly skilled scientific workforce, and extensive regulatory compliance experience, with more than 262 U.S. FDA-compliant plants and nearly 1,400 WHO-GMP approved facilities (Source: Department of Pharmaceuticals, Government of India).
Government Support and Market Dynamics
Indian government officials welcomed Lilly’s investment announcement. A. Revanth Reddy, Chief Minister of Telangana, stated that “Lilly’s continued expansion in Hyderabad highlights the city’s emergence as a powerhouse in global healthcare innovation,” reinforcing the state’s position as a preferred destination for healthcare investments.
Nivruti Rai, managing director and CEO of Invest India, Ministry of Commerce and Industry, noted that “Lilly’s investment in India reflects not only the country’s rise as a competitive global manufacturing and innovation hub, but also Lilly’s own commitment to growth, innovation, and advancing healthcare worldwide.”
The investment comes at a strategic time for Lilly in the Indian market. The company launched its blockbuster weight-loss drug Mounjaro in India this year, alongside Danish competitor Novo Nordisk’s Wegovy, increasing patient awareness of obesity treatments in a country projected to have the world’s second-largest obese population by 2050. Sales of both drugs doubled within months of launch.
Lilly is also preparing for increased competition from Indian generic drugmakers racing to launch cheaper versions of weight-loss medications once key patents expire, with semaglutide, the active ingredient in Wegovy, expected to go off patent next year.
