Commerce Dashboard
Pharmaceuticals
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.

Indian Pharmaceuticals Industry Analysis

    Last updated on Sep, 4 2020

Indian pharmaceutical sector supplies over 50 per cent of the global demand for various vaccines, 40 per cent of the generic demand for US and 25 per cent 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 per cent y-o-y from Rs 1.29 lakh crore (US$ 18.12 billion) in 2018. In May 2020, pharmaceutical sales grew 9 per cent 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 per cent, price growth was at 5.3 per cent, new product growth was at 2.7 per cent, and volume growth was at two per cent 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 per cent 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. Pharmaceutical export from India, which include bulk drugs, intermediates, drug formulations, biologicals, Ayush & herbal products and surgical, reached US$ 16.28 billion in FY20.

Medical devices industry in India has been growing 15.2 per cent 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$ 16.50 billion between April 2000 and March 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 per cent from FY16. As per Economic Survey 2019-20, Government expenditure (as a percentage of GDP) increased to 1.6 per cent in FY20 from 1.2 per cent in FY15 for health. FDI increased to 74 per cent in existing pharmaceutical companies and 100 per cent 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.

Indian Pharmaceuticals Industry Report (August, 2020)
Download PDF Download PDF  (Size: 532.93 KB )

Click to access the Pharmaceuticals Industry Archived Report

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_logo-ibef1.jpg Indian packaging industry riding on the e-commerce wave
IBEF, Knowledge Centre

Packaging plays a pivotal role in consumers’ experience with respect to the brand and the overall purchasing experience. There are four major functions of packaging...

author_logo-ibef1.jpg MSMEs in India – Pad for the next economic leap
IBEF, Knowledge Centre

India has approximately 6.33 crore micro, small and medium enterprises (MSMEs). The number of registered MSMEs grew 18.5% YoY to 25.13 lakh units in 2020, from 21.21 lakh...

author_logo-ibef1.jpg INDIA'S OTT MARKET: WITNESSING A RISE IN NUMBER OF PAID SUBSCRIBERS
IBEF, Knowledge Centre

With enhanced networks, stronger internet connectivity and multimedia service-capable mobiles, the presence of Indian subscribers on over-the-top (OTT) platforms is incre...

author_logo-ibef1.jpg COVID-19: Opportunities for Start-ups
IBEF, Knowledge Centre

India has an ambitious plan to create a US$ 5 trillion economy by 2025. To achieve this goal, the country is focussing on knowledge economy-led development. Knowledge-dri...

author_logo-ibef1.jpg Indian Railways – Net Zero Carbon Emitter by 2030
IBEF, Knowledge Centre

As a first step on the pathway towards low-carbon economic growth, India has set ambitious targets for both reducing carbon emissions and deploying more clean energy. As ...

author_logo-ibef1.jpg An analysis of export preparedness Index by NITI Aayog
IBEF, Knowledge Centre

India is a vast and geographically diverse country with 28 States and 8 Union Territories (UT). India plans to become a US$ 5 trillion economy by 2024 and th...

ideas More

Ideas

Zomato: Top Of The Food Chain
Zomato, an Indian start-up is in the business of online food ordering. It initially launched Foodiebay.com in Gurugram in 2008, a website that scanned menus and provided ratings and recommendations on....

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password