Indian pharmaceutical Industry is well developed and recognized as the “Pharmacy of the World” because of its contribution to the people of the major portion of the world. It exported drugs to over 300 countries and vaccines to more than 250 countries, but its contribution in the area of drug development and discovery is not satisfactory. During Covid pandemic India has proved its ability for drug/vaccine development using indigenous technology. It is also registered a new trend of developing new drug/vaccine jointly by private entrepreneurs and government laboratories like-ICMR, CSIR etc. In order to quick development of drugs, government of India has taken several steps like- framing of new legislation - New Drugs and Clinical trial Rules, making provision for quick approval of new Covid-19 vaccines developed and marketed by developed countries. On the other hand new provisions were made to increase production capacity to make India self reliant under “Atmanirvar Bharat” mission. These initiatives resulted a Paradigm shift of the Indian Pharma Industry during Covid-19 pandemic and beyond from manufacturing to innovation.