Trade Analytics
India's pharmaceutical sector will touch US$ 45 billion by 2020.

Indian Pharmaceuticals Industry Analysis

Latest update: February, 2018

  • India’s cost of production is nearly 33 per cent lower than that of the US
  • Labour costs are 50–55 per cent cheaper than in Western countries. The cost of setting up a production plant in India is 40 per cent lower than in Western countries
  • Cost-efficiency continues to create opportunities for Indian companies in emerging markets & Africa
  • India has a skilled workforce as well as high managerial & technical competence in comparison to its peers in Asia
  • India has the 2nd largest number of USFDA-approved manufacturing plants outside the US
  • India has 2,633 FDA-approved drug products. India has over 546 USFDA-approved company sites, the highest number outside the US
  • Growing per capita sales of pharmaceuticals in India offers ample opportunities for players in this market
  • Per capita sales of pharmaceuticals expanded at a CAGR of 17.6 per cent to US$ 33 in 2016
  • Economic prosperity would improve affordability for generic drugs in the market & improve per capita sales of pharmaceuticals in India




Note: CAGR - Compound Annual Growth Rate

Source: BMI



Last Updated: February, 2018

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 grow to US$ 100 billion by 2025. 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 Drugs & Pharmaceuticals sector has received cumulative FDI worth US$ 15.59 billion between April 2000 – December 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$ 16.84 billion in FY17 and US$ 8.49 billion during April – November 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.

Sectoral Presentation (February, 2018)

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