The pharmaceutical industry in India plays an extremely crucial role in the country’s economic growth. Branded, generic, non-prescription, biopharmaceutical, from pharma contract manufacturers in India, make up the majority of the pharmaceutical sector.
The industry having world-class standards of bulk production capabilities and a large number of skilled domestic workforce, Indian exports seamlessly meet the standards and requirements of highly regulated markets of USA, UK, Middle East, European Union and Canada.
The pharmaceutical industry in India was valued at an estimated US$42 billion in 2021. Although there was an initial restriction over the exports of analgesics, antibiotics such as tinidazole and erythromycin, the progesterone hormone which is used in the contraceptive pills, and vitamins like B12, B1 and B6, all of which together account for about 10% of the country’s overall pharmaceutical exports; Indian pharma exports went up by 18% to a record high of US$ 24.44 billion in pandemic year 2021-21.
Top Pharma Products having Highest Manufacturing and Exporting Demand in India
- India is the world’s third largest provider of generic medicines by volume, with a 20% share of total global pharmaceutical exports. As of 2021, most of the pharmaceuticals made in India are low cost generic drugs which comprise most of the pharmaceutical export of India.
- Domestically, 70% of the Indian pharmaceutical market is dominated by generic drugs, while over-the-counter or OTC medicines and patented treatments account for 21% and 9%, respectively.
- Drugs manufactured under the categories of analgesics, antibiotics, antivirals, vitamins, birth control pills, and ayurvedic medicines comprise the lion’s share of the total Indian pharma exports.
- Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
- India also happens to be the largest vaccine supplier in the world by volume, accounting for more than 50% of all vaccines manufactured in the world.
- In the on-going combat against Covid, bimatoprost manufacturers have seen significant rise in their export as there came of popularity of the drug’s usage with fractional laser and microneedling for issues like COVID-19 prone positioning-induced facial atrophy and hypopigmentation.
India’s Category wise Exports in 2019-20 (Value in USD Million)
- Drug formulations and Biologicals- 11.27%
- Bulk Drugs and Drug intermediates- -0.32%
- Surgicals- -21.32%
- Ayush and Herbal Products- -4.04%
- TOTAL- 7.59%
*Source: Directorate General of Commercial Intelligence and Statistics (DGCIS)
Outlook of Indian Pharma as Manufacturing and Exporting Market Leader
- On an immediate basis, by 2023, India aims to create a fund of about US$ 1.3 billion or INR 1 lakh crore to boost businesses to manufacture pharmaceutical ingredients in the country.
- Further, the ultimate goal is to achieve incremental sales of US$4 billion or INR 294,000 crore and incremental exports of US$ 2.7 billion or INR 196,000 crore between 2022-23 to 2027-28.
- Government of India has launched a Production Linked Incentive (PLI) scheme for the pharmaceutical sector, with the provision of disbursal of US$ 2 billion government incentives, which would run from 2020-21 to 2028-29 with the following aims:
- Reduce import dependence,
- Benefit domestic manufacturers,
- Boost product diversification
- Increase innovation for development of complex and high-tech products especially in in vitro diagnostic devices, and cell based or gene therapy,
- Employment generation,
- Production of wide range of lower cost affordable medicines
With this, India’s dependency over China for the supply of some of the major raw materials of ingredients of the drugs, would not only be reduced to a great extent; but it would also boost the country’s position or ranking as a pharmaceutical manufacturer and exporter in the global market.