Pharmaceutical Exports from India

Introduction

The Indian pharmaceuticals market is the third largest in terms of volume and the 13th largest in terms of value. It has established itself as a global manufacturing and a research hub. A large raw material base and the availability of skilled workforce gives the industry a definite competitive advantage. The Indian pharmaceutical industry is expected to grow at a compound annual growth rate (CAGR) of 22.4% to touch US$ 55 billion by 2020.

The Indian pharmaceuticals market is dominated by generic drugs which constitute nearly 70% of the market, whereas over the counter (OTC) medicines and patented drugs make up to 21% and 9%, respectively.

India plans to set up a nearly Rs 1 lakh crore (US$ 1.3 billion) fund to boost companies to manufacture pharmaceutical ingredients domestically by 2023.

Export and Advantage India

• Pharmaceuticals* export from India stood at US$ 20.70 billion in 2019-20.
• India is expected to rank among the top three pharmaceutical markets in terms of incremental growth by 2020.
• India is the largest supplier of generic medicines globally (20 to 22% of the global export volume)
• The total drugs & pharmaceuticals export during April 2020 to February 2021 was US$ 22.15 billion and for the month of February 2021 it was US$ 2.00 billion.
• India has exported US$ 3.89 billion of Bulk Drugs & Drug intermediates in FY20 and US$ 3.66 billion in FY21**.
• India has one of the lowest manufacturing costs in the world. It is lower than that of USA and almost half of Europe.

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 export.

Source:

• Directorate General of Commercial Intelligence and Statistics
• EXIM Analytics

Note:

* - Includes Bulk Drugs, Drug Intermediates, Drug formulations, Biologicals, Ayush and Herbal Products and Surgicals

**-Till January 2021