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
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
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.
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.)
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 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