Branded generics
Occupies 70%-80% share of the retail market
This page has been last updated on - Nov 06, 2019
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 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
20 %
Generics medicines exports share (global)
11.9 %
Contribution in overall exports
70 %
Generic drugs revenue share
21 %
Patented drugs revenue share
Largest vaccine producer in the world
Bio-Pharma is the largest sector contributing to 62% of the total revenue
Fourth largest medical device market in Asia
Industry Scenario
India is emerging as a key market for Medical Devices and Diagnostics
The pharmaceutical industry was valued at $ 36.7 bn in 2018. The market is expected to expand at a CAGR of 22.4% over 2015–20 to reach $ 55 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 US$ 55 billion will become off-patent during 2017-2019. In the domestic market by revenue, Anti-Infectives (13.6%), Cardiac (12.4%) and Gastrointestinals (11.5%) had the biggest market share.
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 AsiaInfrastructure development
India has the highest number of US-FDA compliant plants outside the USStrong drug manufacturing
Expertise in low cost generic patented drugs and a movement towards end-to-end manufacturingStrong 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
Recent Announcements
Online pharmacy Medlife has acquired Bengaluru based medicine delivery startup Myra. Medlife will use the delivery segment to expand its services to 22 cities.
Active pharmaceutical ingredients (APIs) and drug intermediates maker Divis Laboratories Limited is creating additional capacities by spending as much as INR 15 bn at its existing facilities in the next 15 months
Swiss pharma giant Ferring Pharmaceuticals will be investing $ 250 mn in setting up a manufacturing facility and R&D center in the city’s life sciences hub of Genome Valley.
Tyumen has joined a growing list of Russian regions keen on playing host to pharmaceutical ventures of Indian firms, a move that comes in the backdrop of Russia’s emphasis on building self-reliance in drug production.
Neuberg Diagnostics, an alliance of five leading pathology laboratories from India, South Africa, and the UAE, is planning to invest $ 43.7 mn in India, the Middle East, and Africa as part of its expansion plans.
Pharmaceuticals ingredients
India is the 3rd largest market for APIs globally
Formulations industry
Largest formulations exporter experiencing double-digit growth over next 5 years
Contract research and manufacturing services industry
Strong talent pool and cost savings make this one of the fastest-growing industry segments
Rapidly growing healthcare industry
Rising incomes, affordability of drugs and increasing health insurance penetration
Investible Projects
Investment Opportunities in Pharmaceuticals
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Projects
17
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Opportunity
$3.89 bn
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Promoters
15
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District
12
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Private Projects
12
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Govt. Projects
5
Major Investors
Data on Map
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FAQ
Frequently
Asked Questions
What is Pradhan Mantri Bhartiya Janaushadhi Pariyojana?
'Pradhan Mantri Bhartiya Janaushadhi Pariyojana’ is a campaign launched by the Department of Pharmaceuticals, Govt. Of India, to provide quality medicines at affordable prices to the masses through special kendra’s known as Pradhan Mantri Bhartiya Jan Aushadhi Kendra. Pradhan Mantri Bhartiya Jan Aushadhi Kendra (PMBJK) have been set up to provide generic drugs, which are available at lesser prices but are equivalent in quality and efficacy as expensive branded drugs.
What are the skill development measures undertaken in this 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). As a preliminary step, 11 NIPERs have been transformed as innovation hubs.
What is Bureau of Pharma Public Sector Undertakings of India (BPPI)?
BPPI (Bureau of Pharma Public Sector Undertakings of India) has been established under the Department of Pharmaceuticals, Govt. of India, with the support of all the CPSUs for co-coordinating procurement, supply and marketing of generic drugs through Pradhan Mantri Bhartiya Jan Aushadhi Kendra (PMBJK).
What are the principles for pricing under the National Pharmaceuticals Pricing Policy 2012?
The key principles for the regulation of the prices are:
a) Essentiality of drugs.
b) Control formulations prices.
c) Market based pricing.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.
Stakeholders
Government Ministry/ Department
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By: Invest India26 June , 03:56 PM
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By: Strategic Investment and Research Unit (SIRU)18 June , 04:55 PM
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By: Invest India04 March , 05:56 PM
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