Indian pharmaceuticals - a formula for success
India is a prominent and rapidly growing presence in the global pharmaceuticals industry. 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 has the highest number of US-FDA compliant Pharma plants outside of USA and is home to more than 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities
The pharmaceutical industry in India offers 60,000 generic brands across 60 therapeutic categories. The API industry is the third world's largest, and it has 57% of APIs on the WHO.
- Incentives worth INR 21,940 Crore (~$3 Mn) are approved for the Indian pharmaceuticals market.
- Expected to reach $65 bn by 2024, and ~$120-130 bn by 2030
- Pharmaceutical industry growth rate 10-12%
- Cost of manufacturing ~ 33% lower than western markets
- 18.7% year on year export growth
- India exports $ 40 K worth of pharmaceuticals every minute
100% Foreign Direct Investment (FDI) in the Pharmaceutical sector is allowed under the automatic route for greenfield pharmaceuticals.
100% FDI in the pharmaceutical sector is allowed in brownfield pharmaceuticals; wherein 74% is allowed under the automatic route and thereafter through the government approval route.
For further details, please refer FDI Policy
Generics medicines exports share (global)
- $ Bn
Exports worth (FY 20-21)
Generic drugs revenue share
- $ Bn
FDI (April 200- – March 2021)
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
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
The pharmaceutical industry in India is expected to reach $65 bn by 2024 and to $120 bn by 2030
The pharmaceutical industry in India 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. As per the domestic market share in the pharmaceutical industry 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), 47 applications with committed investments of INR 5366.35 crore have been approved.
Export of Drugs and Pharmaceuticals was valued at $2001.78 bn in August 2021 with a positive growth of 1.21% over exports of $1977.76 bn in August 2020.
Innovation and R&D
Support to innovate high value pharmaceuticals under government incentives including PLI 2.0
Quality services at marginal costs compared to US, Europe, and South Asia
India has the highest number of US-FDA compliant plants outside the US
Strong drug manufacturing
Expertise in low cost generic patented drugs as well as end-to-end manufacturing
Strong domestic demand
Launch of the largest National Health Protection Scheme globally
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
Data On Map
Latest In Pharmaceuticals
Special Incentives for In Vitro Diagnostic …
Pharma & Medical Devices Startup Grand…
Investment Promotion Reforms in India
Economic Survey 2020-21: Volume 1
Economic Survey 2020-21: Volume 2
Frequently VIEW ALL
Invest India closely works with
Government Ministry/ Department
Invest India Timeline
Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity