Snapshot

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 50% of global demand for vaccines. India ranks 3rd worldwide for production by volume and 13th by value, thereby accounting for around 10% of world’s production by volume and 1.5% by value.

India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The Department of Pharmaceuticals aims to make the country a hub for end-to-end drug discovery under its ‘Pharma Vision 2020’.

The country is home to 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities. The domestic pharmaceuticals market turnover reached US$ 18.12 billion in 2018, up 9.4% from 2017, growing as penetration of health insurance and pharmacies rise.

  • From 2018-19, India’s pharmaceuticals exports were worth US$ 19.13 billion with a growth of 10.72 per cent over $17.28 billion in pharma exports last year
  • Third largest Pharmaceuticals market by 2020 in terms of incremental growth
  • The cost of manufacturing in India is approximately 33% lower than that of the US

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

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. This is set to grow as exports of generics to the US rise, as branded drugs worth US$ 55 billion will become off-patent during 2017-2019. In the domestic market by revenue, Anti-Infectives (13.6%), Cardiac (12.4%) and Gastrointestinals (11.5%) had the biggest market share.

Growth Drivers

  • 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.)

  • 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 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

Investible Projects

Investment Opportunities in 

  • Projects

    316

  • Opportunity

    $4.49 bn

  • Promoters

    108

  • District

    162

  • Private Projects

    11

  • Govt. Projects

    305

open

$564.52 mn

Entertainment Park Project [Gorai]

State (s) Maharashtra
open

$492.05 mn

Ski Resorts & Ski Lift Project [Shimla]

State (s) Himachal Pradesh
open

$366.94 mn

Dadasaheb Phalke Film City Project [Mumbai]

State (s) Maharashtra
open

$201.11 mn

Cauvery Statue Project [Mandya]

State (s) Karnataka

Major Investors

Data On Map

Pharmaceutical Industry in India

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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 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.

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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Authored By:
Rajat Yadav,  Radhika Mehta

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