Pharmaceutical Exports from India

Introduction

It has established itself as a global manufacturing and research hub. A large raw material base and the availability of a skilled workforce give the industry a definite competitive advantage. The Indian pharmaceutical industry is expected to grow at a compound annual growth rate (CAGR) of 22.4 per cent to touch US$ 55 billion by 2020, from US$ 20 billion in 2015.

India’s pharmaceutical space is dominated by generic drugs, which accounts for around 70 per cent of the market.

EXPORTS AND ADVANTAGE INDIA

• The Indian Pharmaceuticals Industry (IPI) earns around 70 per cent of its revenues from sale of generic drugs and generates around 50 per cent of its revenues from exports.
• India is the largest supplier of generic medicines globally (20 per cent of global export volume)
• Pharmaceutical export from India stood at US$ 16.84 billion in 2016-17, and is expected to reach US$ 20 billion by the year 2020.
• US Food and Drug Administration (USFDA) approvals to Indian companies totalled 201 in FY 2015-16, up from 109 approvals received in FY2014-15.
• India has one of the lowest manufacturing costs in the world. Manufacturing cost in India is approximately 35–40 per cent of that in the US as installation and workforce costs are low.
• India is expected to rank amongst the top three pharmaceutical markets in terms of incremental growth by 2020.

PHARMACEUTICAL EXPORT PROMOTION COUNCIL

The Pharmaceutical Export Promotion Council (PHARMEXCIL) was established in 2004 by the Ministry of Commerce and Industry, Government of India, to promote pharma exports.