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.


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



Last Updated: October, 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 (October, 2016)

Download PDF   Download  (Size: 797.99 KB )


Brand India Pharma


Indian pharma company have won around 40 per cent of all Abbreviated New Drug Approval (ANDA) from the US Food and Drug Administration (FDA) between j...

+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

India Now Magazine

India Now Business and Economy


+ More Publications >

IBEF Publication

Blog – Perspectives on India More

Powered by the Who's Who of India

author_download1.jpg Kent RO Systems: All about purity!
Dr. Mahesh Gupta, Chairman & Managing Director, Kent RO Systems Ltd

Kent RO Systems is known for revolutionising the water purification industry in India. The company today commands a market share of about 40 per cent in RO water purifier...

author_Anu_P._Mathai_photo_1_-_mobile_photo_1.jpg Mobile The best way to reach the consumer?
Anu P. Mathai, IES, Chief Executive Officer, IBEF

The mobile phone has become one of the primary devices used by the consumer today across the globe. A similar trend is visible in the Indian market as well. With a total ...

author_Anu_P._Mathai_photo_1_-_mobile_photo_1.jpg Indian film industry to reach US$ 3.7 billion by 2020
Anu P. Mathai, IES, Chief Executive Officer, IBEF

The Indian film industry is expected to grow at a compounded annual growth rate (CAGR) of 11 per cent to reach US$ 3.7 billion by 2020, according to a recently released r...

author_Narayan_51.jpg Decoding GST for manufacturing SMEs
Mr. R. Narayan, Founder & CEO, Power2SME

As the eagerly and anxiously awaited Goods and Services Tax (GST) Bill, 2016 sailed through the Rajya Sabha with two-thirds majority in which 203 members voted i...

author_shobhit-jain1.jpg India: Unlocking our skies
Dr. Shobhit Jain, IRS, Deputy CEO IBEF

In a major boost to regional air connectivity, the Government of India has recently announced that it plans to set up 50 new airports in the country over the next three y...

author_ravi-capoor1.jpg GST: Great Step of Transformation

The much-awaited Constitution Amendment Bill for Goods and Services Tax (GST) was passed in the Parliament recently and is expected to be implemented by April 2017 replac...

ideas More


A Big Step Forward
Krispian Lawrence co-founded Ducere Technologies with Anirudh Sharma in 2011. Lechal is the outcome of their concerted efforts to use haptics in the wearable technology space. Both Anirudh and I were always fascinated by wearable technology, and were tinkering with various ideas in this space. But the concept was nascent...


Join now. Enjoy FREE subscriptions downloads, updates and more.


Already a member?
Login / Retrieve Password

x IBEF : India Brand Equity Foundation