India’s pharmaceutical industry has remained one of the fastest-growing industries due to its huge demand. In 2023, the sector gained momentum in forming a Global Alliance with many countries. Being a significant player, the country has maintained its position as 3rd largest producer of pharmaceuticals in terms of volume and the 14th largest producer in terms of value.
The pharma sector has undergone a dynamic landscape which is expected to grow US dollars 100 billion by 2025. Besides this, India is also known to be the second largest contributor to the global biotech and pharmaceutical workforce. This has positioned India to lead in the coming years with the growing support of the government to hit 130 million dollars by the end of 2030.
In this article, let’s deeply dive into some achievements of the pharma industry and discover the gaps and growth opportunities waiting for us to explore in 2024.
This blog will enlighten you about its impact on India’s economy and how this information can be a significant contributor to fostering a healthier and more resilient Society.
The Evolution of the Indian Pharmaceutical Industry in 2023
India has grown tremendously due to its high quality and high affordability offerings of pharmaceuticals. Highlighting below some facts that made India the pharmacy of the world.
- According to the economic survey of 2022-2023, India is the largest provider of generic medications worldwide. Successfully occupying a 20% share in the Global supply by volume, has led to the increased production and sales of generic medications in 2023.
- It is also a leading country for manufacturing vaccines holding a market share of 60%. Where, 42- 70% of vaccines are developed for Diphtheria, Tetanus, and Pertussis (DPT) and Bacillus Calmette–Guérin (BCG), and 90% for the measles vaccine. These are all made on WHO demand.
- It contributes 8% to the Global API industry by manufacturing 500 APIs from its quality API manufacturers.
- Being the largest country to supply generic medications, it has 60,000 different generic brands that offer different therapeutic categories. This accounts for 20% of the Global supply chain for generics.
- India is also well known for providing affordable treatment for HIV. Through this, it plays a pivotal role in shaping India’s trajectory and reputation throughout the world.
- When it comes to formulation, India ranks 12th in terms of export value. This makes it one of the largest formula exporters. A significant growth of 4.72% is witnessed in the Pharmaceutical Exports by February 2023 in contrast to the growth of previous years.
All these achievements have shaped India to become the pharmacy of the world. These highlights show India’s transformation which anticipates a long-term growth of the pharma industry in the coming years.
Gov Initiatives Taken to Boost Industrial Growth
Several schemes have helped sustain the growth of the sector. The government aims for the country to step up its game by envisioning a great Pharma future. Following are some schemes that enhanced the efficiency of the Indian Pharmaceutical sector in 2023.
National Pharmaceutical policy- the policy serves as a comprehensive framework to combat challenges through 5 key pillars. These are Rearing Global Pharmaceutical Leadership, Promoting Self-Reliance, Advancing Health Equity and Accessibility, and Improving Regulatory Efficiency. India aims to enhance its industrial ecosystem with this definitive policy.
Liberalized Foreign Direct Investment (FDI) Limit- The government has launched a policy that offers 100% FDI via the automatic route for Greenfield investments and up to 74% FDI for Brownfield investments. This has resulted in attracting 3% of total FDI equity worth 21.5 billion dollars.
Scheme for Human Resource Development- This scheme was devised to provide a skilled workforce through research and development for the medical device sector. Around 5000 students were trained for 3 years to remove India’s dependency on importing high and medical devices.
Scheme for Promotion of Research and Innovation- Launched in 2023, this scheme outlays the financial of 5000 crores. This financial investment was promoted to transform the Indian Pharma medical sector with technical advancement and innovation through in-depth R&D.
PLI Scheme- This scheme was brought to elevate the pharma sector with domestic manufacturing by creating domestic leaders in Pharma manufacturing. It presents an outlay of 1.9 lakh crore that has witnessed 46% growth in FDI inflow from the year 2022 to 2023. It significantly helped reduce the imports of raw materials from outside countries.
Future Growth Opportunities in Pharma Businesses
Looking forward to 2024 Indian pharma growth is expected to reach 65 billion dollars by this year and 130 billion dollars by 2030. With the widespread of new technology advancements, the industry has experienced rapid and radical change in a few years. Thus the sector is expected to grow at CAGR 22.4 % in the future.
Observing the sector’s rapid growth, the government has also shown a significant contribution to encouraging 2000 startups in the field of Life Science. In addition to this, big pharma companies are now allocating 5 to 10% of their company’s revenue to R&D for future biotech startups hoping it will attract global partners.
Monitoring market trends and evaluating ongoing fluctuations is crucial for any business owner to indulge in a new pharma business. Thus to aim for continued growth in the pharmaceutical sector, understanding the domestic and emerging markets is substantial for earning great revenues.
A higher chance of earning profitable earnings is by witnessing and focusing on elements like company performance, following the latest trends, assuring regulations, and becoming aware of market demands. Thus, emphasizing quality manufacturing should be a key focus to experience notable growth in the pharma business.
Unimarck Pharma is a well reputable pharmaceutical company that offers generic and ethical medications throughout the country. Operating in this dynamic field as an essential player, we work towards aligning our goals of pharma production. By understanding the latest market trends and demands of the public, we have shown consistent growth for 40 years by launching new products to fulfil various market demands. Thriving to fulfil various pharma production demands, we bring quality and affordable medications to the table. Also, acknowledging the government’s supportive policies, we hope to drive the growth of new businesses by offering our best contract manufacturing services.