Indian pharmaceutical sector supplies over 50% of the global demand for various vaccines, 40% of the generic demand for US and 25% of all medicines for UK. India contributes the second largest share of pharmaceutical and biotech workforce in the world. India’s domestic pharmaceutical market turnover reached Rs. 1.4 lakh crore (US$ 20.03 billion) in 2019, up 9.8% y-o-y from Rs. 1.29 lakh crore (US$ 18.12 billion) in 2018. In May 2020, pharmaceutical sales grew 9% y-o-y to Rs. 10,342 crore (US$ 1.47 billion).
During December 2019, on moving annual total (MAT) basis, industry growth was at 9.8%, price growth was at 5.3%, new product growth was at 2.7%, and volume growth was at two% y-o-y.
Indian drugs are exported to more than 200 countries in the world, with US being the key market. Generic drugs account for 20% of the global export in terms of volume, making the country the largest provider of generic medicines globally. It is expected to expand even further in the coming years. The Indian pharmaceutical exports, including bulk drugs, intermediates, drug formulations, biologicals, Ayush & herbal products and surgical, reached US$ 16.28 billion in FY20. As of October 2020, India exported pharmaceuticals worth US$ 13.87 billion in FY21. Pharmaceutical exports from India stood at US$ 16.28 billion in FY20 and US$ 2.07 billion in October 2020.
Medical devices industry in India has been growing 15.2% annually and is expected to reach US$ 8.16 billion by 2020 and US$ 25 billion by 2025.
Affordable medicines under Pradhan Mantri Bhartiya Janaushdhi Kendra's (PMBJKs) achieved an impressive sale of Rs. 100.40 crore (US$ 14.24 million) in the first two months of FY21.
‘Pharma Vision 2020’ by the Government’s Department of Pharmaceuticals aims to make India a major hub for end-to-end drug discovery. The sector received cumulative Foreign Direct Investment (FDI) worth US$ 16.54 billion between April 2000 and June 2020. Under Union Budget 2020-21, allocation to the Ministry of Health and Family Welfare stands at Rs. 65,012 crore (US$ 9.30 billion), whereas, Rs. 6,429 crore (US$ 919 million) has been allocated to health insurance scheme, Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). In November 2019, the cabinet approved the extension/renewal of extant Pharmaceuticals Purchase Policy (PPP) with the same terms and conditions, while adding one additional product, namely Alcoholic Hand Disinfectant (AHD), to the existing list of 103 medicines till the final closure/strategic disinvestment of pharma CPSUs.
Government expenditure on healthcare increased to Rs. 3.24 lakh crore (US$ 45.96 billion) in FY20, growing at a CAGR of 18% from FY16. As per Economic Survey 2019-20, Government expenditure (as a percentage of GDP) increased to 1.6% in FY20 from 1.2% in FY15 for health. FDI increased to 74% in existing pharmaceutical companies and 100% in new projects.
India plans to set up a nearly Rs. 1 lakh crore (US$ 1.3 billion) fund to provide boost to companies to manufacture pharmaceutical ingredients domestically by 2023.
Click to access the Pharmaceuticals Industry Archived Report
In the FY2021-22 Union Budget, the Government of India announced an ambitious divestment target...
In March 2021, the Union Cabinet of India approved a memor...
The vehicle scrappage policy is a government-funded programme ...
The ‘Smart City Mission' is a revolutionary proj...
The handloom and handicraft industry has been the backbone of ...
The government’s objective to strengthen the healthcare ...