SECTORS AT THE INDIA PAVILION

Pharmaceuticals

POTENT PRESCRIPTION
India Is The Largest Producer Of Generic Drugs Globally.

The Indian pharmaceutical industry is currently valued at US$ 41 billion.

India is the World’s No.1 producer of generic drugs, churning out 60,000 generic brands across 60 therapeutic categories.

The country is expected to become a US$ 65 billion pharmaceutical industry by 2024.

India ranks 3rd worldwide for production by volume and 14th for production by value, of pharmaceutical drugs and products.

The sector supplies over 62% of the global demand for vaccines - 40% of generic demand in the US and 25% of all medicine in the UK.

The Active Pharmaceutical Industry in India is ranked 3rd largest in the world, contributing to 57% of APIs in the WHO prequalified list.

The total addressable market potential for e-pharmacies is expected to be US$ 18.1 billion by 2023.

Over 80% of the antiretroviral drugs to combat AIDS are supplied globally by Indian pharmaceutical firms.

India ranks 3rd worldwide for production by volume and 14th for production by the value of pharmaceutical drugs and products. The sector supplies over 62% of the global demand for vaccines - 40% of generic demand in the US and 25% of all medicine in the UK.

India is the source of more than 500 different Active Pharmaceutical Ingredients (APIs). The API Industry in India is ranked third largest in the world, contributing to 57% of APIs in the WHO prequalified list. India has the largest number of US-FDA compliant Pharma plants (more than 262 including APIs) outside of the USA. Being home to more than 3,000 pharmaceutical companies, the country has a strong network of over 10,500 manufacturing facilities. Over 80% of the antiretroviral drugs to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied globally by Indian pharmaceutical firms. The pharmaceutical export numbers from India stood at US$ 20.70 billion in FY20. Furthermore, the Indian pharmaceutical industry’s export to the US has boomed with branded drugs worth US$ 55 billion coming off-patent.

The cost of manufacturing in the Indian subcontinent is approximately 33% lower than that of the US. The country is home to a large pool of scientists and engineers who have the potential to steer the pharmaceutical industry to great heights. It has more than 2000 WHO-GMP approved Pharma Plants and 253 European Directorate of Quality Medicines (EDQM) approved plants with modern state of the art Technology.

The Government of India has taken strident measures to improve the sector while focussing on the accessibility of medicine for the masses. Some of these measures include:

  • Under Budget 2020–21, US$ 9.30 billion has been allocated to the Ministry of Health and Family Welfare. In addition, the Government has allocated US$ 4.88 billion towards the National Health Mission to benefit rural and urban population.
  •  Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) affordable medicines sales achieved a record turnover of US$ 7.38 million in the month of April 2020.
  • The National Health Protection Scheme is the largest Government funded healthcare programme in the world, and is expected to benefit 100 million poor families with a cover of up to US$ 7,723 per family per year for secondary and tertiary care.
  • In October 2019, the Telangana state government proposed Hyderabad Pharmaceutical City with financial assistance of US$ 489 million from the Central government .

 

Following are the significant developments that have taken place in the pharmaceutical industry insofar as investments are concerned:

  • The government has allowed 100% Foreign Direct Investment (FDI) under the automatic route for Greenfield pharmaceuticals. 100% FDI has also been allowed in brownfield pharma; 74% under the automatic route and thereafter through government approval route.
  • The drugs and pharmaceuticals sector attracted cumulative FDI inflow worth US$ 16.50 billion between April 2000 and March 2020.
  • Dr Reddy’s Laboratories, Zydus Cadila, Glenmark Pharmaceuticals, Torrent Pharmaceuticals, Hetero Drugs and Ackerman Pharma have signed a deal with Hidalgo state of Mexico to set up a large pharmaceutical cluster for production and logistics.
  • India’s biotechnology industry comprising biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics is expected to grow at an average annual rate of 30% to US$ 100 billion by 2025.
  • The healthcare sector in India has witnessed private equity of a total US$ 1.1 billion with 27 deals in the first financial half of 2019.
  • The government has plans to set up a US$ 1.3 billion fund by 2023, to boost domestic manufacture of pharmaceutical ingredients.

Startups like Pharmeasy have raised millions of dollars worth of funding and have simplified door-step delivery of medicines. Aggregation and delivery aside, some innovators are working to provide solutions of a more human-centric nature. The total addressable market potential for e-pharmacies is expected to be US$ 18.1 billion by 2023.

The Indian Pharmaceutical Industry with its sheer size, unmatched production capacity, institutional support and cutting-edge R&D is at the forefront of the global market. And it intends to stay put for a long time  to come.

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