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 50% of global demand for vaccines. India ranks 3rd worldwide for production by volume and 13th by value, thereby accounting for around 10% of world’s production by volume and 1.5% by value.
India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The Department of Pharmaceuticals aims to make the country a hub for end-to-end drug discovery under its ‘Pharma Vision 2020’.
The country is home to 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities. The domestic pharmaceuticals market turnover reached US$ 18.12 billion in 2018, up 9.4% from 2017, growing as penetration of health insurance and pharmacies rise.
- From 2018-19, India’s pharmaceuticals exports were worth US$ 19.13 billion with a growth of 10.72 per cent over $17.28 billion in pharma exports last year
- Third largest Pharmaceuticals market by 2020 in terms of incremental growth
- The cost of manufacturing in India is approximately 33% lower than that of the US
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