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

Indian Pharmaceuticals Industry Analysis

Latest update: April, 2018

  • The Indian pharmaceuticals market witnessed growth at a CAGR of 5.64 per cent, during FY11-16, with the market increasing from US$ 20.95 billion in FY11 to US$ 27.57 billion in FY16. The industry’s revenues are estimated to have grown by 7.4 per cent in FY17.
  • Indian pharmaceutical market grew 5.5 per cent in CY2017 in terms of moving annual turnover. In March 2018, the market grew at 9.5 per cent year-on-year with sales of Rs 10,029 crore (US$ 1.56 billion).
  • By 2020, India is likely to be among the top three pharmaceutical markets by incremental growth and 6th largest market globally in absolute size.
  • Increase in the size of middle class households coupled with the improvement in medical infrastructure and increase in the penetration of health insurance in the country will also influence in the growth of pharmaceuticals sector.
Growth

Notes: F - Forecast, CAGR - Compound Annual Growth Rate, CY – Calendar Year, E - Estimated
Source: Department of Pharmaceuticals, PwC, McKinsey, AIOCD AWACS

  • Indian pharma companies are capitalising on export opportunities in regulated and semi-regulated markets
  • In FY17, India exported pharmaceutical products worth US$ 16.8 billion, with the number expected to reach US$ 40 billion by 2020. During April 2017–February 2018, India exported pharmaceutical products worth Rs. 767.17 billion (US$ 11.90 billion).
  • Indian drugs are exported to more than 200 countries in the world, with the US as the key market
  • India is the world’s largest provider of generic medicines; the country’s generic drugs account for 20 per cent of global generic drug exports (in terms of volumes)
  • Around 40.6 per cent of India’s US$ 16.8 billion pharmaceutical exports in 2016-17 were to the American continent, followed by a 19.7 per cent to Europe, 19.1 per cent to Africa and 18.8 per cent to Asian countries.
Growth

Notes: CAGR - Compound Annual Growth Rate, 1 – Import from April 2015-December 2015.
Source: Department of Commerce India, Department of Pharmaceuticals, India Business News, BMI

Last Updated: April, 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. In March 2018, the Indian pharmaceutical market grew at 9.5 per cent year-on-year.

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 products worth Rs 767.17 billion (US$ 11.90 billion) during April 2017–January 2018.

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 (April, 2018)

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Previous Sectoral Presentation (April, 2017)

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