The Indian pharmaceutical industry accounts for over 8 per cent of global pharmaceutical production. The industry has over 60,000 generic brands across 60 therapeutic categories and manufactures more than 400 different active pharmaceutical ingredients (APIs).
The Indian pharma sector revenues stood at US$ 15.6 billion during 2011 and are expected to reach US$ 35.9 billion by 2016. Further, total pharma exports from India are forecasted to increase more than two fold over the next five years. The trade surplus in the sector is likely to expand to US$ 16.5 billion by 2016.
Due to its cost advantage, India has emerged as a major producer of generic drugs with several companies focussing on this sector. The manufacturing cost of Indian pharma companies is up to 65 per cent lower than that of US firms and almost half of that of European manufacturers.
The Government of India (GOI) allows zero duty for technology upgrades in the pharmaceutical sector through the Export Promotion Capital Goods (EPCG) Scheme and is planning to relax foreign direct investment (FDI) norms in the sector.
India is among the leaders in the clinical trial market. Due to a genetically-diverse population and availability of skilled doctors, India has the potential to attract huge investments in its clinical trial market.