India is one of the largest providers of generic drugs worldwide. Indian pharmaceutical industry supplies over 50 percent of global demand for various vaccines, 40 percent of generic demand in the US, and 25 percent of all medicine in the UK.
India has a large pool of scientists and engineers who have the potential to drive the industry ahead to a higher level. Today, over 80 percent of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical companies.
In 2017, the pharmaceutical sector was valued at US$ 33 billion. India’s pharmaceutical exports stood at US$ 17.27 billion in FY18 and reached US$ 19.14 billion in FY19.
The country accounts for around 30 percent (by volume) and about 10 percent (value) in the US$ 70-80 billion US generics market.
India’s biotechnology industry is expected to grow at an average growth rate of around 30 percent a year and reach US$ 100 billion by 2025.
According to information released by the Department of Industrial Policy and Promotion (DIPP), the pharmaceutical sector during the years 2000 and 2019 was worth US$ 15.98 billion including FDI.
Here are some of the recent developments and investments related to the pharmaceutical sector:
- In July-Sep 2018, the Indian pharmaceutical sector witnessed 39 PE investment deals worth US$ 217 million.
- The investment in research & development by Indian pharmaceutical companies* increased from 5.3 percent in FY12 to 8.5 percent in FY18.
- Medicine spending in India is projected to grow 9-12 percent over the next five years, leading India to become one of the top 10 countries in terms of medicine spending.
- Furthermore, growth and development in domestic sales will also depend on how pharmaceutical companies upgrade their product portfolio for chronic diseases that are on the rise.
- Also, the Indian government has taken steps to reduce costs and bring down healthcare expenses. The introduction of generic drugs in the market has remained in focus and is expected to be beneficial for Indian pharmaceutical companies. In addition, the impelling need for rural health programs, lifesaving drugs, and preventive vaccines also steers the development well of pharmaceutical companies.
