The study highlights a specific region of India, Gujarat, as key to the Indian pharma industry - it accounts for around 42 per cent of India's total pharma turnover and 22 per cent of its drug exports.
Acquisitions of foreign assets or export-led business models have significantly contributed to the growth of this latter share.
Although India has long been seen by many as a centre of generic drugs manufacturing, the introduction of product patents has seen many pharma companies begin their own research and development programmes and also begin to explore international markets.
"India is also increasingly emerging as one of the most globally preferred outsourcing / offshoring destinations for pharma," said the report, referring to the increased Contract Research and Manufacturing Services (CRAMS).
In order for these encouraging trends to continue and drive forward the pharma industry in the country, KPMG stresses that India must change its ways in order to attract more investment and the best scientists.
"As India further increases its dominance in the world pharma market, Gujarat, with its growth enablers and strong building blocks can become a global pharmaceutical hub.
"However, this would call for an enormous change in mindset and transformation to attract global capital and talent," said the report.
Some of the areas KPMG believes India can lead the way is in medical tourism, contract research and pharma machinery manufacturing.
"To attain a leading position in the global pharma industry, Gujarat would have to develop into an ideal location for global clinical research, avid competitor in CRAMS and centre of excellence for overall pharmaceutical development," the report continued.
The "Gujarat Pharma Industry:
Striding into the future" report is available on the KPMG in India website .