Snapshot

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

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. 

GROWTH DRIVERS

  • Innovation and R&D

    Support to innovate high value pharmaceuticals under government incentives including PLI 2.0

  • Medical tourism

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

  • Infrastructure development

    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

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Production Linked Incentive (PLI) Scheme

The Indian pharmaceuticals market is supported by the following Production Linked Incentive Schemes to boost domestic manufacturing capacity, including high-value products across the global supply chain.
1. PLI Scheme for Key Starting Materials (KSMs)/Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) (PLI 1.0) 2. Production-Linked Incentive (PLI) Scheme for Pharmaceuticals d (PLI 2.0)

  • INR 21,940 cr

    Scheme Outlay

Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.

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FAQs

Frequently
Asked Questions

What are the skill development measures undertaken in Pharmaceutical 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)

For more information, click here.

 

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What principles does National Pharmaceuticals Policy follow while pricing drugs?

The key principles for the regulation of the prices are:
 a) Essentiality of drugs.
 b) Control formulations prices.
 c) Market based pricing.

For more information, click here.

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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.

For more information, click here.

 

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What is the cluster development programme for pharma sector?

The CDP scheme is implemented on a Public Private Partnership format through one-time grant-in-aid with aim to enhance Quality, productivity & Innovative capabilities of the SME Pharma sector in the country.

The benefits of the scheme are:

a) Access to world class facility.

b) Cost of production will come down by 20%.

For more information, click here.

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Where can I the pharma get an overview of Indian Pharma sector?

The pharmaceutical sector in India, expected to expand at a CAGR of 22.4 per cent over 2015–20 to reach US$ 55 billion. India’s pharmaceutical exports stood at US$ 17.27 billion in FY18 and have reached US$ 10.80 billion in FY19. Sector supplies over 50% of global demand for various vaccines.

For more information, click here.

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