Indian pharmaceutical sector accounts for about 3.1 – 3.6 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. India contributes the second largest share of pharmaceutical and biotech workforce in the world.
With 71 per cent market share, generic drugs form the largest segment of the Indian pharmaceutical sector. India has become the third largest global generic API merchant market by 2016, with a 7.2 per cent market share. 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 bio-economy, which includes biopharma, bioagri, IT services, biofuels and bio-services was estimated at US$ 35.1 billion in 2016. Indian Drugs & Pharmaceuticals sector has received cumulative FDI worth US$ 14.99 billion between April 2000 – June 2017.
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. India exported pharmaceutical items worth US$ 16.64 billion in FY17 and US$ 5.15 billion during April – August 2017.
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.