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 $ 17.27 bn in 2017-18.

  • Indian Pharmaceuticals market is expected to reach $ 55 bn by 2020
  • 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 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

Indian Pharmaceutical Industry

Largest vaccine producer in the world

Pharma Industry

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

Pharma Industry in India

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. 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.

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…

Investible Projects

Investment Opportunities in Pharmaceuticals

  • Projects

    18

  • Opportunity

    $81.35 mn

  • Promoters

    17

  • District

    12

  • Private Projects

    15

  • Govt. Projects

    3

open

$21.6 mn

Pharmaceutical Park at Chaygaon

State (s) Assam
open

$18.98 mn

Active Pharmaceutical Ingredients Project [Visakhapatnam]

State (s) Andhra Pradesh
open

$14.06 mn

Bulk Drugs Project [Dahej]

State (s) Gujarat
open

$6.59 mn

Active Pharmaceuticals Ingredients Project [Ankleshwar]

State (s) Gujarat

Major Investors

Data on Map

  • Pharmaceutical Industry in India

Latest in Pharmaceuticals

FAQ

Frequently
Asked Questions

  • 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 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.

  • What is the cluster development programme for 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%.

  • What is the overview of the pharma sector in India and the performance of this sector in recent times?

    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.

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