Indian pharmaceuticals - a formula for Success
The Indian Pharmaceuticals industry plays a prominent role in the global pharmaceuticals industry. India ranks 3rd worldwide for production by volume and 14th by value. The nation is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and is the leading vaccine manufacturer globally. India also 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 as well as a highly skilled resource pool.
The pharmaceutical industry in India offers 60,000 generic brands across 60 therapeutic categories. Major segments include generic drugs, OTC Medicines, API/Bulk Drugs, Vaccines, Contract Research & Manufacturing, Biosimilars and Biologics.
- Incentives worth INR 21,940 Cr ($3 Bn) are approved.
- Market size expected to reach $65 bn by 2024, and ~$130 Bn by 2030.
- Expected growth rate of 11-12% (2020-2030).
- Cost of manufacturing ~ 33% lower than western markets.
Indian pharma companies enabled by their price competitiveness and good quality, have made global mark, with 60% of the world’s vaccines and 20% of generic medicines coming from India.
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 21-22)
- $ Bn
FDI (Apr 2021-Dec 2022)
Largest vaccine producer in the world
Largest manufacturer and exporter of generic medicines
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
The pharmaceutical industry in India is expected to reach $65 Bn by 2024 and to $130 Bn by 2030.
The pharmaceutical industry in India is currently valued at $50 Bn.
India is a major exporter of Pharmaceuticals, with over 200+ countries served by Indian pharma exports. India supplies over 50% of Africa’s requirement for generics, ~40% of generic demand in the US and ~25% of all medicine in the UK.
India also accounts for ~60% of global vaccine demand, and is a leading supplier of DPT, BCG and Measles vaccines. 70% of WHO’s vaccines (as per the essential Immunization schedule) are sourced from India.
The Average Index of Industrial Production of Manufacturing of pharmaceuticals, medicinal chemicals and botanical products in the FY 2021-22 is 221.6 and has grown by 1.3%
For the period 2021-22, export of drugs and pharma products stood at $24.6 Bn compared to $24.44 Bn as of 2020-21. The Indian pharma industry witnessed exponential growth of 103% during 2014-22 from $11.6 bn to $24.6 Bn.
Government incentives including an outlay of INR 21,940 for PLI 1.0 and PLI 2.0
Quality services at marginal costs compared to US, Europe, and South Asia
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
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)
Scheme Outlay INR 6,940 Cr
PLI for Bulk Drugs
Scheme Outlay INR 15,000 Cr
PLI Scheme for Pharmaceuticals Manufacturing
- Complex generic drugs
- Patented drugs or drugs nearing patent expiry
- Cell based or gene therapy products
- Orphan drugs
- Special empty capsules
- Complex excipients
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