Introduction
The Indian pharmaceutical industry has experienced significant growth, establishing itself as a global leader in pharmaceuticals. This article explores its historical development, current global standing, and key statistics, providing insights into the factors driving this growth and the industry’s future prospects.
Further just holding up with the need at house, the Indian pharma industry controls over 20 percent of the global pharma supply chain and manages about 60 percent of the worldwide market for vaccines. It fulfills 40 percent of the generic need in the word and supplies a quarter of all drugs in the UK.
India is one of the most prominent suppliers of low-cost vaccines globally. India accounts for 60% of international vaccine manufacturing, presenting up to 70% of the WHO need for Diphtheria, Tetanus, and Pertussis (DPT) and Bacillus Calmette–Guérin (BCG) vaccines, and 90% of the WHO requires for the measles vaccine.
Overview of the Indian Pharmaceutical Industry
The Indian pharmaceutical industry began in the early 20th century with Bengal Chemicals and Pharmaceuticals in 1901. A major shift occurred in the 1970s with the Indian Patent Act, 1970, which promoted process patents and fostered the production of generic drugs. This foundation has led to India becoming a hub for affordable, Generic Medicines.
India is now a leading global producer of generic drugs, supplying over 50% of global vaccine demand and about 40% of generic drugs in the word. Known for cost-effective manufacturing and strong R&D, India plays a crucial role in global healthcare.
India is an international leader in the supply of many medications and vaccines. It bounced from 40$ billion in 2021 to an anticipated 130$ billion in 2030, with predictions striking 450$ billion by 2047.
Key Statistics and Figures:
Several factors have contributed to the robust growth of the Indian pharmaceutical industry over the last five years:
Increasing incidence of chronic diseases and an aging population have spurred demand for pharmaceutical products. Policies such as ‘Make in India’ and the Production Linked Incentive (PLI) scheme have encouraged investment in domestic manufacturing.
India’s pharmaceutical industry boasts a market size of USD 42 billion as of 2021, making it the third-largest pharmaceutical market in terms of volume and the thirteenth-largest in terms of value.
The industry’s revenue is projected to grow to USD 65 billion by 2024. In terms of market share, the industry is dominated by generic drugs, which constitute 70-80% of the market.
India’s pharmaceutical market is comparable to those of developed economies in terms of volume but lags in terms of value. This discrepancy is primarily due to the lower pricing of generic medicines.
Market Size and Growth Rate
Current Market Size: The Indian pharmaceutical industry is a significant player in the global market, with substantial revenue and market share.
Comparison with Global Pharmaceutical Markets: India ranks third worldwide in terms of pharmaceutical production by volume and 14th by value. It is one of the largest exporters of pharmaceuticals.
Growth Rate: The industry has shown consistent growth over the past decades and is projected to grow at a CAGR of 9.48% to reach USD 65 billion by 2024.
Key Drivers of Growth:
Key Segments in the Indian Pharmaceutical Industry
Generic Drugs: Dominant market segment with robust growth. Leading companies: Actiza pharmaceutical Pvt Ltd,Sun Pharmaceutical Industries, Cipla, Dr. Reddy’s Laboratories, Lupin, Aurobindo Pharma, Torrent Pharmaceuticals, Zydus Cadila, Glenmark Pharmaceuticals, Alkem Laboratories, Biocon.
Over-the-Counter (OTC) Medicines: Growing segment due to increased consumer awareness and self-medication.
Active Pharmaceutical Ingredients (APIs): India is one of the largest producers, supplying over 20% of global demand, with strong export capabilities.
Biosimilars and Biologics: Rapid growth driven by increasing acceptance and regulatory support, with significant market potential.
Investment and R&D
Export Trends
Export Statistics: Pharmaceutical exports valued at USD 25.3 billion in FY 2022-2023, with consistent growth over the last decade.
Major Export Destinations: European Union, and emerging markets in Africa and Asia.
Competitive Advantages: Cost-effective manufacturing and economies of scale. High quality standards and regulatory compliance, with facilities approved by the US FDA, EMA, and other global bodies.
Government Policies and Regulations
Regulatory Framework: Key regulatory bodies: CDSCO, PCI, NPPA. Recent policy changes like the New Drug and Clinical Trial Rules, 2019, streamlining drug approval processes.
Supportive Government Initiatives: ‘Make in India’ initiative encouraging investment in pharmaceutical manufacturing. PLI scheme providing financial incentives based on incremental sales.
Challenges and Opportunities
Future of the Indian Pharmaceutical Industry
Impact of COVID-19
Conclusion
The Indian pharmaceutical industry has solidified its position as a global leader through significant growth in generic drug production, robust R&D initiatives, and strategic government support. Despite challenges such as regulatory hurdles and supply chain issues, the industry is poised for further expansion, driven by innovation and increasing global demand. The future looks promising with continued investments in healthcare infrastructure, adoption of advanced technologies, and a focus on enhancing drug manufacturing capabilities.