New Delhi, Sept. 18 -- India's pharmaceutical industry is set to record healthy revenue growth of 7-9 per cent in FY26, even as challenges in the United States market continue to weigh on performance, noted rating agency ICRA in its latest sector outlook.

According to ICRA, the growth momentum will be driven by 8-10 per cent expansion in the domestic market and 10-12 per cent gains in Europe, while sales in the US are likely to moderate to 3-5 per cent, compared with nearly 10 per cent growth achieved in FY25.

"The domestic market continues to be a key growth driver for Indian pharma companies. Sales force expansion, improved productivity of medical representatives, deeper rural distribution, and new product launches are expected to sup...