Pharmaceuticals
India's pharmaceutical sector will touch US$ 45 billion by 2020.

Indian Pharmaceuticals Industry Analysis

Latest update: September, 2016

 

Increasing investments in the sector

• The Indian pharmaceuticals market increased at a CAGR of   17.46 per cent in 2015 from US$ 6 billion in 2005 and is expected   to expand at a CAGR of 15.92 per cent to US$ 55 billion by 2020.

• By 2020, India is likely to be among the top three pharmaceutical   markets by incremental growth and sixth largest market globally   in absolute size.

• India’s cost of production is significantly lower than that of the US   and almost half of that of Europe. It gives a competitive edge to   India over others.

Growth

Generic drugs form the largest segment

• With 70 per cent of market share (in terms of revenues), generic   drugs form the largest segment of the Indian pharmaceutical   sector.

• India supply 20 per cent of global generic medicines market   exports in terms of volume, making the country the largest   provider of generic medicines globally and expected to expand   even further in coming years

• Over the Counter (OTC) medicines and patented drugs   constitute 21 per cent and 9 per cent, respectively, of total   market revenues of US$ 20 billion

Growth

 

Last Updated: September, 2016

Indian pharmaceutical sector accounts for about 2.4 per cent of the global pharmaceutical industry in value terms and 10 per cent in volume terms and is expected to expand at a Compound Annual Growth Rate (CAGR) of 15.92 per cent to US$ 55 billion by 2020 from US$ 20 billion in 2015. 

With 71 per cent market share, generic drugs form the largest segment of the Indian pharmaceutical sector. By 2016, India is expected to be the third-largest global generic Active Pharmaceutical Ingredient (API) merchant market. The country accounts for the second largest number of Abbreviated New Drug Applications (ANDAs) and is the world’s leader in Drug Master Files (DMFs) applications with the US.

Indian drugs are exported to more than 200 countries in the world, with the US as the key market. Generic drugs account for 20 per cent of global exports in terms of volume, making the country the largest provider of generic medicines globally and expected to expand even further in coming years. Pharmaceuticals Exports Promotion Council (Pharmexcil) expects pharmaceutical exports to reach US$ 25 billion in 2015.

The Government of India plans to set up a US$ 640 million venture capital fund to boost drug discovery and strengthen pharmaceutical infrastructure. The ‘Pharma Vision 2020’ by the government’s Department of Pharmaceuticals aims to make India a major hub for end-to-end drug discovery.

Sectoral Presentation (September, 2016)

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