The Indian pharmaceutical industry accounts for about 1.4 per cent of the global pharma industry in value terms. The industry has over 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different active pharmaceutical ingredients (APIs).
The Indian pharma sector revenues are expected to rise at a compounded annual growth rate (CAGR) of 17.8 per cent during 2008-16 to reach US$ 36 billion. The Ministry of Commerce targets to increase pharmaceutical export to US$ 25 billion by 2016. Indian drugs are exported to more than 200 countries in the world, with the US as the key market.
India's low cost of production and research and development (R&D) boosts efficiency of pharma companies. The cost of production in the country is approximately 60 per cent lower than that of the US and almost half of that of Europe.
The Government of India (GOI) unveiled ‘Pharma Vision 2020’ aimed at making India a global leader in end-to-end drug manufacturing. The government has also allowed zero duty for technology upgrades in the pharmaceutical sector through the Export Promotion Capital Goods (EPCG) Scheme.
India is among the leaders in the clinical trial market. Due to a genetically-diverse population and availability of skilled doctors, the country has the potential to attract huge investments in its clinical trial market.