Economic Rise of India: An ESG Perspective with Reference to Selected Pharmaceutical Companies

Abstract

India’s pharmaceutical sector, often termed the “Pharmacy of the World”, plays a crucial role in the nation’s economic development, job creation and global healthcare accessibility. Nevertheless, in today’s landscape the economic progress is increasingly assessed through the prism of sustainability and ethical accountability. Environmental, social and Governance (ESG) practices have surfaced as a pivotal framework for evaluating corporate resilience and the creation of long-term value. This study examines the influence of ESG implementation on India’s economic growth, particularly in relation to key pharmaceutical companies like Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories, Cipla Limited, Lupin Limited and Aurobindo Pharma. The focus of the research is to assess how these organizations incorporate ESG efforts such as minimizing carbon emissions, enhancing access to affordable medicines, promoting workplace diversity and bolstering governance structures and how these initiatives contribute to India’s image as a leader in sustainable development. The research approach employed is quantitative, relying predominantly on secondary data sources including sustainability reports from 2020 to 2024, the SEBI’s Business Responsibility and Sustainability Reporting (BRSR) framework, peer reviewed articles and reputable government and industry databases. Content analysis was utilized to evaluate corporate disclosures while correlation analysis was implemented to emphasize ESG score and profitability within the pharmaceutical sector. The outcomes and conclusions indicate that there is a high relation between ESG score and profitability  which not only bolsters corporate image but also enhances investor confidence, foster international partnerships and guarantees the long term competitiveness of the Indian pharmaceutical companies. Furthermore ESG integration aligns the industry with global sustainability standards and the United Nation Sustainable Development Goals (SDGs), rendering India’s economic progression both inclusive and accountable. However the study recognizes some limitations. Issues with data reliability arise from discrepancies in the ESG reporting among different companies. The analysis confines to secondary data which may not fully capture the realities of on ground operations.  Additionally, the research is limited to five major pharmaceutical firms excluding smaller companies from its scope. Despite these constraints the study offers valuable insights into the relationship between India’s economic development, pharmaceutical sector growth and adoption of ESG practices.