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Global pharmaceutical major Eli Lilly has announced plans to invest over $1 billion in India in the coming years to strengthen its manufacturing and supply chain through partnerships with local drugmakers. The move is part of the company’s broader strategy to expand global production capacity and tap into India’s growing pharmaceutical ecosystem.

Patrik Jonsson, President of Lilly International, said the company is making “significant investments” worldwide to expand medicine manufacturing and supply. “India is a hub for capability building within our global network,” he noted.

The US-based drugmaker aims to collaborate with Indian manufacturers to produce some of its key medicines targeting obesity, diabetes, Alzheimer’s, cancer, and autoimmune diseases. Although Lilly does not currently operate its own production facility in India, the company confirmed it is “actively engaging with contract manufacturers” across the country.

New Facility in Hyderabad

As part of its expansion, Lilly is setting up a manufacturing and quality facility in Hyderabad, which will oversee its contract manufacturing network and enhance technical capabilities. Recruitment for the new site has already begun, with openings for engineers, chemists, analytical scientists, and quality assurance experts.

The Hyderabad hub will operate alongside Lilly’s existing global capability center in the city, marking a major step toward establishing a stronger operational footprint in South Asia.

Riding India’s Obesity Treatment Wave

Lilly’s decision to scale up in India follows the successful launch of its blockbuster weight-loss drug Mounjaro earlier this year. The product’s debut, along with Danish competitor Novo Nordisk’s Wegovy, has triggered a surge in demand for obesity treatments in India — a country projected to have the world’s second-largest obese population by 2050.

Sales of both drugs have doubled within months of their introduction, reflecting the rapid adoption of new-generation therapies among Indian patients.

However, competition is heating up. Several Indian generic drugmakers are preparing to launch cheaper versions of Wegovy once its main compound, semaglutide, loses patent protection next year — a development that could reshape the obesity drug market.

Global Manufacturing Drive Amid Trade Pressures

Lilly’s India investment aligns with its broader $27 billion global expansion plan, which includes four new US plants. Just last month, the company announced a $5 billion facility in Virginia to reinforce domestic production amid shifting trade policies.

The company’s push into India also comes as global pharmaceutical firms are diversifying supply chains in response to new US tariffs of up to 100% on imported branded and patented drugs, effective October 1.

By leveraging India’s skilled workforce and cost-efficient production base, Eli Lilly aims to ensure greater resilience and accessibility of its life-saving medicines worldwide — while deepening its engagement with one of the fastest-growing healthcare markets on the planet.