Snapshot

Indian pharmaceuticals- a formula for success

India is the largest provider of generic medicines globally, occupying a 20% share in global supplies by volume. The country is home to 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities. The cost of production in India is around one-third of that in the US and almost half of that in Europe.

India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The export of generic drugs is one of India's core strengths. The export of Pharmaceuticals stood at $ 16.3 bn in 2015-16.

  • Pharma exports recorded CAGR of 11.9% for a decade ending 2015-16
  • Third largest Pharmaceuticals market by 2020 in terms of incremental growth

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 more details refer to FDI Policy 2017

  • 20%

    Generics medicines exports share (global)

  • 11.9%

    Contribution in overall exports

  • 70%

    Generic drugs revenue share

  • 21%

    Patented drugs revenue share

A

Largest vaccine producer in the world

B

Bio-Pharma is the largest sector contributing to 62% of the total revenue

C

Fourth largest medical device market in Asia

Industry Scenario

India is emerging as a key market for Medical Devices and Diagnostics

The Pharmaceutical industry in India accounts for about 2.4% of the global Pharmaceutical industry in value terms. The turnover of the sector was estimated at $ 27.5 bn in 2015-16. The market is expected to expand at a CAGR of 12.8% over 2015–20 to reach $ 55 bn.

Generic drugs with 70% market share form the largest segment of the Pharmaceutical industry in India. Over-the-counter (OTC) medicines constitute around 21% of the market while patented drugs have a 9% share.

The Medical device market in India which was valued at $ 3.9 bn in 2015, accounted for approximately 1.7% of the global medical device market. The industry estimate suggests that the Medical device market in India will grow at a CAGR of 16% to reach $ 8.1 bn in 2020. India is currently among the top 20 global Medical device markets and the 4th largest medical device market in Asia.

Growth Drivers

  • Innovation and R&D

    To develop new complex generic drugs

  • Medical tourism

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

  • Infrastructure development

    6 pharma and 2 medical devices parks in the pipeline

  • New IPR policy

    Increased control over patent infringement

  • Strong drug manufacturing

    Expertise in low cost generic patented drugs

  • Open

    Cluster development Scheme

    The Department of Pharmaceuticals has announced the scheme f…

  • Open

    Implementation of Scheme for Schedule M…

    As per the second supplement of the Revised Guidelines issue…

  • Open

    Janaushadhi Scheme

    With a view to achieve the objective of making available qua…

  • Open

    National Pharmaceutical Pricing Policy 2…

    NPPP 2012 aims at the regulation of prices of drugs is on th…

  • Open

    Pharmaceutical Promotion Development Sch…

    The objective of Pharmaceutical Promotion Development Scheme…

  • Open

    TB and Kala azar Scheme

    Department of Pharmaceuticals is running following two inter…

Major Investors

Data on Map

FAQ

Frequently
Asked Questions

  • 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 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 is the difference between terms like API, Bulk drugs, Intermediates, Finished Dosage, and Formulations that are common jargons in the Pharmaceutical Industry?

    The definitions are:

    1) API – Active Pharmaceutical Ingredient – is the basic drug itself with the desired medicinal (pharmaceutical) properties. Also referred to as Bulk Drugs.

    2) Intermediates – Most chemical reactions are stepwise, that is they take more than one elementary step to complete. An API is a result of a complex chain of chemical reactions in several steps. Intermediates are stable forms a few steps away from the final API e.g. API -3, or API-5.

    3) Finished Dosage or Formulation – is the form in which the drug is consumed by us. A dosage form of a drug is usually composed of two things: The API, which is the drug itself; and an excipient, which is the substance of the tablet, or the liquid the API is suspended in, with other masking, stabilising and binding agents/material that is pharmaceutically inert.

    APIs are supplied by Pharmaceutical manufacturers to Formulations players or for own consumption for in-house Formulations. Intermediates are supplied to API manufacturers for reducing time-to-market."

  • What is a Generic Medicine?

    Generic medicines are unbranded medicines which are equally safe and having the same efficacy as that of branded medicines in terms of their therapeutic value. The prices of generic medicines are much cheaper than their branded equivalent.

  • 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.

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