Often hailed as the ‘pharmacy of the world,’ the Indian pharmaceutical industry is booming. It jumped from $40 billion (INR 3,34,000 Crores) in 2021 to an expected $130 billion(INR 1,086,800 Crores) in 2030, with projections hitting $450 billion by 2047 (INR 3,752,550 Crores). According to government data, the Indian pharmaceutical industry is worth approximately US$ 50 billion with over US$ 25 billion of the value coming from exports.
Beyond just keeping up with the demand at home, the Indian pharma industry commands over 20% of the global exports and addresses approximately 60% of the worldwide demand for vaccines. It meets 40% of the generic demand in the US and provides a quarter of all medicines in the UK. It has undergone a remarkable transformation, evolving into a dynamic powerhouse driving healthcare advancements worldwide.
Interestingly, India is the biggest contributor to UNESCO, with a share of over 50-60%. The largest number of US FDA-approved plants outside the US is in India which has 500 API producers that make up around 8% of the worldwide API market.
The domestic pharmaceutical industry includes a network of 3,000 drug companies and over 10,000 manufacturing units. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms. India is rightfully known as the “pharmacy of the world” due to the low cost and high quality of its medicines and is the third largest in the world in terms of volume and 14th largest in terms of value.
During FY18 to FY23, the Indian pharmaceutical industry logged a compound annual growth rate (CAGR) of 6-8%, primarily driven by an 8% increase in exports and a 6% rise in the domestic market.
The Indian pharmaceutical industry has seen a massive expansion over the last few years. It is expected to reach about 13% of the size of the global pharma market while enhancing its quality, affordability, and innovation.
EXPORTS
Pharmaceuticals is one of the top ten attractive sectors for foreign investment in India. The pharmaceutical exports from India reach more than 200 nations around the world, including highly regulated markets of the USA, West Europe, Japan, and Australia. India’s drugs and pharmaceuticals exports stood at US$ 22.51 billion in FY24 (April-January) recording a strong year-on-year growth of 8.12% during the period.
Generic drugs account for 20% of the global export in terms of volume, making the country the largest provider of generic medicines globally. Indian drug & pharmaceutical exports stood at US$ 25.36 billion in FY23, US$ 24.60 billion in FY22, and US$ 24.44 billion in FY21.
INVESTMENTS AND RECENT DEVELOPMENTS
The Indian Pharmaceuticals industry plays a prominent role in the global pharmaceuticals industry. India ranks third worldwide for production by volume and 14th by value.
GOVERNMENT INITIATIVES
Some of the initiatives taken by the Government to promote the pharmaceutical sector in India are as follows:
In the Interim Budget 2024-25:
- The government earmarked Rs. 1,000 crore (US$ 120 million) for the promotion of bulk drug parks for FY25, a significant increase from the previous year.
- The total outlay for the development of the pharmaceutical industry for FY25 was increased to Rs. 1,300 crore (US$ 156.5 million) for FY25.
- The outlay for the Jan Aushadhi scheme, the initiative to provide affordable generic medicines in the country, was hiked to Rs. 284.5 crore (US$ 34 million) for FY25, up from Rs. 110 crore (US$ 13 million) in the revised estimate for FY24.
ROAD AHEAD
Medicine spending in India is projected to grow 9-12% over the next five years, leading India to become one of the top 10 countries in terms of medicine spending. Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as cardiovascular, anti-diabetes, anti-depressants, and anti-cancers, which are on the rise. The aging population, the rise in chronic diseases, and other government programs, including opening pharmacies that offer inexpensive generic medications, should all contribute to boosting the Indian pharmaceutical industry.
ABARIS Universal Ventures provides expertise in various domains of Pharmaceutical Promotion such as
- Sales & Marketing- employing the latest communication techniques to drive business growth.
- Business Development & Management both on online and offline platforms.
- Analytics & Forecasting- keeping pace with the latest tools and techniques aiding informed decision-making.
- Product Launches & product lifecycle management.
- Recruitment & Team Management.
- Training & Skill Development.
ABARIS Universal Ventures facilitates its pharmaceutical clients in driving organizational success through strategic initiatives.
ABARIS Universal Ventures 