Pharma Industry in India: Driving Global Innovation

The pharma industry in India stands at the forefront of global innovation, driven by a robust scientific base, government backing, and competitive manufacturing. Contributing 1.32% to the Gross Value Added in 2020-21, the sector's turnover hit $42.34 billion in 2021-22. Dive into the dynamics fueling this success and the strategic initiatives propelling its growth.

Indian Pharmaceutical Industry Overview

Navigating the diverse landscape of the Indian pharmaceutical industry reveals a tapestry of segments driving innovation and meeting global healthcare needs.

Diverse Segments

Key segments include generics, OTC, bulk drugs, vaccines, contract research and manufacturing, biosimilars, and biologics.

Global Rankings

Ranked 3rd in the world by volume and 14th by value of pharmaceutical production. India supplies 20% of generics by volume and dominates the global vaccines market with a 60% share.

Manufacturing Prowess

With 500 API manufacturers contributing 8% to the global API industry, India is a key player in pharmaceutical manufacturing.

Growth of Pharma Industry in India

From FY18 to FY22, the industry grew at a CAGR of 9.47% to reach $42.34 billion. Forecasts predict a $65 billion industry by 2024 and a remarkable $120 billion by 2030.

Government Initiatives

India's pharmaceutical industry growth is fortified by a range of visionary government initiatives, creating an environment conducive to innovation and global competitiveness.

Vision Pharma 2047

The government envisions India as a global leader in the production of affordable, innovative medicines. Goals include ensuring accessibility, reducing carbon footprint and promoting a holistic product profile.

National Pharmaceutical Policy (2023)

A comprehensive framework to address the challenges facing the industry, focusing on global leadership, self-reliance, health equity, regulatory efficiency and investment attraction.

Boosting FDI

Liberalized FDI limits, allowing up to 100% FDI for greenfield and 74% for brownfield investments, attracting over $21.5 billion in FDI equity inflows.

Strengthening the Pharmaceutical Industry Scheme (2022)

A scheme with an outlay of INR 500 crore till FY 2025-26 to enhance the capacity of pharmaceutical clusters, facilitate MSMEs and boost the growth of the sector.

Promotion of Bulk Drug Parks (2020)

Boost domestic manufacturing by providing financial support for infrastructure facilities in identified bulk drug parks.

Human Resource Development in the Medical Devices Sector (2023)

A scheme to bridge the gap between industry and academia and provide skilled manpower for the medical device sector.

Research and Innovation Incentive Programme (PRIP)

Launched in 2023 with a budget of INR 5000 crore till FY 2027-28, to promote industry-academia linkages for R&D in priority areas.

Production Linked Incentive (PLI) Programs

PLI for Pharmaceuticals

With an outlay of INR 15,000 crore till FY 2027-28, the scheme incentivizes additional sales of pharmaceutical products and has 55 approved companies.

PLI to Promote Domestic Manufacturing of Medical Devices

A scheme with an outlay of INR 3420 crore till FY 2027-28, incentivizing incremental sales, targeting various medical devices.

PLI Scheme for Critical Starting Materials (KSMs)/Drug Intermediates and APIs

A scheme with an outlay of INR 6,940 crore till FY 2029-30, incentivizing domestic manufacturing of 53 critical KSMs/Dis/APIs.

Impact and Future Outlook

These initiatives resulted in a 46% increase in FDI inflows and reduced raw material imports. With continued government support, the pharma industry in India is poised for sustained growth, offering unparalleled opportunities for global collaborations and investments.

Embrace Innovation, Explore Opportunities

The pharma industry in India is not just a sector; it's a dynamic force driving global healthcare innovation. With robust growth, pioneering initiatives, and government support, the Indian pharmaceutical landscape presents unprecedented opportunities for international stakeholders. As the industry gears up to reach new heights with a projected $120 billion by 2030, it's the perfect time for businesses to align with this growth trajectory.

Export Portal, your gateway to global trade, provides a unique platform to tap into the potential of the pharma industry in India. Whether you are looking to source high-quality pharmaceuticals, explore partnerships, or expand your market presence, Export Portal facilitates seamless connections. Join us in revolutionizing healthcare, fostering innovation, and contributing to the monumental strides of the Indian pharmaceutical sector.

Don't miss out on being part of a transformative journey. Embrace the opportunities, navigate the evolving landscape, and elevate your business in the dynamic world of the pharma industry in India through Export Portal. Connect, collaborate, and catalyze growth on a global scale.