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

  • 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. 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
  • 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

    17

  • Opportunity

    $3.89 bn

  • Promoters

    15

  • District

    12

  • Private Projects

    12

  • Govt. Projects

    5

open

$3.81 bn

Hyderabad Pharma City Project

State (s) Telangana
open

$21.68 mn

Pharmaceutical Park at Chaygaon

State (s) Assam
open

$19.05 mn

Active Pharmaceutical Ingredients Project [Visakhapatnam]

State (s) Andhra Pradesh
open

$14.11 mn

Personalised Immunotherapy Based Cancer Research Facility

State (s) Haryana

Major Investors

Data on Map

  • Pharmaceutical Industry in India
 
 

Latest in Pharmaceuticals

FAQ

Frequently
Asked Questions

  • What is Pradhan Mantri Bhartiya Janaushadhi Pariyojana?

    'Pradhan Mantri Bhartiya Janaushadhi Pariyojana’ is a campaign launched by the Department of Pharmaceuticals, Govt. Of India, to provide quality medicines at affordable prices to the masses through special kendra’s known as Pradhan Mantri Bhartiya Jan Aushadhi Kendra. Pradhan Mantri Bhartiya Jan Aushadhi Kendra (PMBJK) have been set up to provide generic drugs, which are available at lesser prices but are equivalent in quality and efficacy as expensive branded drugs.

  • 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 is Bureau of Pharma Public Sector Undertakings of India (BPPI)?

    BPPI (Bureau of Pharma Public Sector Undertakings of India) has been established under the Department of Pharmaceuticals, Govt. of India, with the support of all the CPSUs for co-coordinating procurement, supply and marketing of generic drugs through Pradhan Mantri Bhartiya Jan Aushadhi Kendra (PMBJK).

  • 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.

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