The India Future Readiness Indicator 2025
Innovation, digitalization, and ESG critical pillars to power a future-ready India
India’s First CII–IMD Future Readiness Report Unveils Major Transformation Underway in food & beverage and Pharma Industries
CII–IMD Launch First-Ever ‘Future Readiness Report’ as India’s food & beverage and Pharma Sectors Enter a Transformational Decade
India’s packaged food & beverage, and pharmaceutical industries are entering a pivotal phase of transformation driven by innovation, digitalization, and a shift toward sustainable, future-ready business models. Together, these sectors form a central pillar of India’s growth engine, and their rapid evolution will play a defining role in shaping the country’s economic trajectory. Research for these sector reports was conducted in collaboration with CII and at IMD’s research hub in Shenzhen, China, with insights released at the ‘India Edge’ conference in New Delhi today.
The research assesses how prepared and competitive Indian companies are in an evolving market. Built on two pillars evaluating both present-day stability and long-term transformation capacity—Core Resilience and New Growth Engines—the research covers sector specific factors tailored to each industry’s unique dynamics.
Mr Chandrajit Banerjee, Director General, CII stated that “the insights from the India Future Readiness Reports highlight a powerful shift across twp of India’s most important sectors. As companies strengthen their capabilities and adapt to a rapidly evolving marketplace, they are laying the foundation for a more competitive and resilient economy. This progress positions India to lead with confidence in the decade ahead.”
Mr Mark Greeven, Dean of Asia at IMD said, “The clear story here is that instead of competing on cost and capacity, the most future-ready companies are those that are investing in digital capabilities, stronger brands, and greener business models – regardless of sector. Firms that use this moment to double down on R&D, data, and talent will not only win at home but shape global standards.”
Food and Beverage sector highlights
The research suggests that rapid growth in packaged food and beverages sector (F&B) is powered by strong domestic demand, large agriculture base, rising incomes, urbanization, and sustained investment in food processing and modern cold chains.
Innovation and brand engagement are emerging as key differentiators. However, innovation is marketing-driven rather than science based. Strong digital engagement, loyalty programmes and omnichannel strategies are helping leading firms to build deeper customer connection.
The sector is steadily shifting from a cost-driven model to one centred on brand value, innovation, and customer experience. Companies that accelerate investment in innovation, digital capabilities, and sustainability will strengthen their competitiveness both in India and globally.
Reflecting similar sentiments, Mr Banerjee noted, “The sector’s strong fundamentals, growing digital adoption, and rising focus on quality and formalization signal a powerful transformation underway. India’s food and beverage industry is well on its way to unlocking its next level of scale and making a winning leap toward greater competitiveness and global standing.”
Pharmaceutical sector highlights
The sector is entering a new phase of transition, marked by tighter supply chains, stricter environmental norms, and faster innovation cycles. India’s strengths in generics provide resilience, but moving up the value chain will require greater investment, stronger research capabilities, and deeper ESG integration.
India must build on its manufacturing strength to compete in a future shaped by advanced biology, AI-driven discovery, and sustainability expectations.
Benchmarking against global leaders reveals few gaps in R&D scale, platform-based innovation, and enterprise-wide AI integration. While Indian companies are increasing R&D spending, absolute investments remain limited, especially in advanced biologics, and AI-assisted discovery.
Global pharma is rapidly shifting toward integrated, outcome-focused solutions that combine drugs with devices, data, and services. Indian firms remain predominantly product-led, with digital and AI adoption occurring largely through small pilots. Partnerships with medtech and digital-health players represent an immediate opportunity.
“CII reiterates its commitment to working closely with the government to build a resilient, innovation-driven, and globally competitive pharmaceutical ecosystem—one that accelerates R&D, expands high-quality manufacturing, boosts exports, and further strengthens India’s leadership in global healthcare,” said Mr. Banerjee.
03.12.2025
New Delhi
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