India is one of the largest provider of generic drugs worldwide. Indian pharmaceutical industry supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in 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 per cent 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 have reached US$ 19.14 billion in FY19.
The country accounts for around 30 per cent (by volume) and about 10 per cent (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 per cent 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 year 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:
- During Jul-Sep 2018, 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 per cent in FY12 to 8.5 per cent in FY18.
- Medicine spending in India is projected to grow 9-12 per cent 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 the domestic sales will also depend on how pharmaceutical companies upgrade their product portfolio for chronic diseases that are on rise.
- Also, the Indian government has taken steps to reduce costs and bring down healthcare expenses. Introduction of generic drugs in the market has remained in focus and is expected to be beneficial for the Indian pharmaceutical companies. In addition, the impelling need for rural health programmes, lifesaving drugs and preventive vaccines also steers development well of the pharmaceutical companies.