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 $ 17.27 bn in 2017-18.
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)
Contribution in overall exports
Generic drugs revenue share
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
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. The rise of exports of generics to the US will lead to further growth of generic drugs. Moreover, 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.
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.
Occupies 70%-80% share of the retail market
India is the 3rd largest market for APIs globally
Largest formulations exporter experiencing double-digit growth over next 5 years
Strong talent pool and cost savings make this one of the fastest-growing industry segments
Rising incomes, affordability of drugs and increasing health insurance penetration
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Pharmaceuticals Sector
Setting up Business in India
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.
The key principles for the regulation of the prices are:
a) Essentiality of drugs.
b) Control formulations prices.
c) Market based pricing.
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.
The scheme, launched in 2015, is being implemented on a Public Private Partnership (PPP) format. The benefits of the scheme are:
a) Access to world class facility.
b) Cost of production will come down by 20%.
India is one of the largest producers of pharmaceutical products and a leading player in the global generics market. Indian pharmaceuticals turnover is valued at approximately $ 31 billion. The country exports 20% of global generics, making it the largest provider of generic medicines globally.
For information on achievements of this sector in recent times, please access the achievement report on the link.
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Nicole Rocque
By: Nicole Rocque
By: Nicole Rocque
By: Sanchi Padia
By: Invest India
By: Preet Deep Singh
By: Anusha Agarwal
