According to Arunish Chawla, secretary of the Department of Pharmaceuticals, India plans to incentivise local production of GLP-1 drugs, which treat diabetes and obesity, starting in 2026. GLP-1 drugs, initially approved for diabetes, are now widely used for obesity treatment due to their ability to slow digestion and promote a feeling of fullness.
Danish pharmaceutical company Novo Nordisk’s patent on semaglutide, the active ingredient in the popular obesity drug Wegovy and diabetes drug Ozempic, is set to expire in India in 2026. Following this, Indian companies are expected to start manufacturing these drugs with support from the government’s production-linked incentive (PLI) scheme.
Drugmakers globally are eager to tap into the weight-loss drug market, which is projected to reach $100 billion by the decade’s end. India, facing high obesity rates, especially among women, and having the world’s second-highest number of type 2 diabetes cases, sees significant potential in this market.
The World Obesity Federation Atlas estimates that around 11% of Indian adults will be obese by 2035. Domestic pharmaceutical giants Biocon, Sun Pharma, Cipla, Dr Reddy’s, and Lupin are interested in producing GLP-1 drugs. Since 2020, India has offered various incentives to boost local manufacturing, though success has been limited.
The upcoming incentive scheme requires drugmakers to classify GLP-1 drugs as ‘anti-diabetic’ in their applications. Approval for obesity treatment will depend on future regulatory endorsements. India’s move to support local GLP-1 drug manufacturing aligns with global trends and market opportunities and aims to address the growing health challenges of diabetes and obesity.