Snapshot

Indian pharmaceuticals - a formula for success

India is a prominent and rapidly growing presence in global pharmaceuticals. It is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and also supplies 62% of global demand for vaccines. India ranks 3rd worldwide for production by volume and 14th by value. India is the only country with largest number of US-FDA compliant Pharma plants (more than 262 including APIs) outside of USA. India has more than 2000 WHO-GMP approved Pharma Plants, 253 European Directorate of Quality Medicines (EDQM) approved plants with modern state of the art Technology.

India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The API industry is ranked third largest in the world contributing 57% of APIs to prequalified list of the WHO.

The country is home to more than 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities. The domestic pharmaceuticals market turnover reached $20.03 bn in 2019, up 9.3% from 2018, growing as penetration of health insurance and pharmacies rise.

  • The total market size of the Indian Pharma Industry is expected to reach $130 Bn by 2030
  • India holds 12% of all global manufacturing sites catering to US market
  • The cost of manufacturing in India is approximately 33% lower than that of the US
  • India’s online pharmacy market is estimated to swell to $2.7 bn by 2023 from about $360 mn in 2019

100% Foreign Direct Investment (FDI) is allowed under the automatic route for greenfield pharma.

100% FDI is allowed in brownfield pharma; wherein 74% is allowed under the automatic route and thereafter through government approval route

For further details, please refer FDI Policy

  • %

    Generics medicines exports share (global)

  • $ Bn

    Pharma exports worth

  • %

    Generic drugs revenue share

  • %

    Patented drugs revenue share

Largest vaccine producer in the world

Largest manufacturers and exporters of generic medicines

Indian Pharma Industry generates over $11 bn of trade surplus every year

Pharmaceuticals Information Kit
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Industry Scenario

The industry is expected to reach $65 bn by 2024 and to $120 bn by 2030

The pharmaceutical industry is currently valued at $41.7 bn.

Generic drugs, with 71% market share, form the largest segment of the Pharmaceutical industry in India. This is set to grow as exports of generics to the US rise, as branded drugs worth $55 bn will become off-patent during 2017-2019. In the domestic market by revenue, Anti-Infectives (13.6%), Cardiac (12.4%) and Gastrointestinal (11.5%) had the biggest market share.

Under the Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs), 33 applications with committed investments of INR 5082.65 crore have been approved.

GROWTH DRIVERS

  • Innovation and R&D

    To develop new complex generic drugs, supplemented by the New Drugs and Clinical Trial Rules, 2019 and the Atal Innovation Mission (a Government of India initiative with the objectives of entrepreneurship and innovation promotion via mentorship, competition etc.)

  • Medical tourism

    Quality services at marginal costs compared to US, Europe, and South Asia

  • Infrastructure development

    India has the highest number of US-FDA compliant plants outside the US

  • Strong drug manufacturing

    Expertise in low cost generic patented drugs and a movement towards end-to-end manufacturing

  • Strong domestic demand

    Launch of the National Health Protection Scheme, the largest government funded healthcare programme globally, as well as an economic growth-driven increase in healthcare spending

Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Pharmaceuticals drugs for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

  • INR 15,000 cr

    Scheme Outlay

Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.

FAQs

Frequently
Asked Questions

What are the skill development measures undertaken in Pharmaceutical sector?

To keep pace with the growing demand for highly skilled R&D professionals the government has undertaken the transformation of National Institutes of Pharmaceutical Education and Research (NIPERs)

For more information, click here.

 

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What principles does National Pharmaceuticals Policy follow while pricing drugs?

The key principles for the regulation of the prices are:
 a) Essentiality of drugs.
 b) Control formulations prices.
 c) Market based pricing.

For more information, click here.

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What is the objective of the Pharmaceutical Promotion Development Scheme?

The objective of Pharmaceutical Promotion Development Scheme (PPDS) is promotion, development and export promotion in Pharmaceutical sector by extending financial support for conduct of seminars, conferences, exhibitions, mounting delegations to and from India for promotion of exports as well as investments, conducting studies/ consultancies for facilitating growth, exports as well as critical issues affecting Pharma sector.

For more information, click here.

 

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What is the cluster development programme for pharma sector?

The CDP scheme is implemented on a Public Private Partnership format through one-time grant-in-aid with aim to enhance Quality, productivity & Innovative capabilities of the SME Pharma sector in the country.

The benefits of the scheme are:

a) Access to world class facility.

b) Cost of production will come down by 20%.

For more information, click here.

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Where can I the pharma get an overview of Indian Pharma sector?

The pharmaceutical sector in India, expected to expand at a CAGR of 22.4 per cent over 2015–20 to reach US$ 55 billion. India’s pharmaceutical exports stood at US$ 17.27 billion in FY18 and have reached US$ 10.80 billion in FY19. Sector supplies over 50% of global demand for various vaccines.

For more information, click here.

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