Last Updated: December 10, 2018
Last Updated: November, 2018
India is the largest provider of generic drugs globally. Indian pharmaceutical sector industry supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in UK.
India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers who have the potential to steer the industry ahead to an even higher level. Presently over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
The pharmaceutical sector was valued at US$ 33 billion in 2017. The country’s pharmaceutical industry is expected to expand at a CAGR of 22.4 per cent over 2015–20 to reach US$ 55 billion. India’s pharmaceutical exports stood at US$ 17.27 billion in 2017-18. In 2018-19 these exports are expected to cross US$ 19 billion.
Indian companies received 304 Abbreviated New Drug Application (ANDA) approvals from the US Food and Drug Administration (USFDA) in 2017. The country accounts for around 30 per cent (by volume) and about 10 per cent (value) in the US$ 70-80 billion US generics market.
India's biotechnology industry comprising bio-pharmaceuticals, bio-services, bio-agriculture, bio-industry and bioinformatics is expected grow at an average growth rate of around 30 per cent a year and reach US$ 100 billion by 2025.
The Union Cabinet has given its nod for the amendment of the existing Foreign Direct Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100 per cent under the automatic route for manufacturing of medical devices subject to certain conditions.
The drugs and pharmaceuticals sector attracted cumulative FDI inflows worth US$ 15.83 billion between April 2000 and June 2018, according to data released by the Department of Industrial Policy and Promotion (DIPP).
Some of the recent developments/investments in the Indian pharmaceutical sector are as follows:
Some of the initiatives taken by the government to promote the pharmaceutical sector in India are as follows:
Medicine spending in India is expected to increase at 9-12 per cent CAGR between 2018-22 to US$ 26-30 billion, driven by increasing consumer spending, rapid urbanisation, and raising healthcare insurance among others.
Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are on the rise.
The Indian government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.
Exchange Rate Used: INR 1 = US$ 0.0149 as on June 29, 2018
References: Consolidated FDI Policy, Department of Industrial Policy & Promotion (DIPP), Press Information Bureau (PIB), Media Reports, Pharmaceuticals Export Promotion Council, AIOCD-AWACS, IQVIA
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Last Updated: December 10, 2018
Indian pharma company have won around 40 per cent of all Abbreviated New Drug Approval (ANDA) from the US Food and Drug Administration (FDA) between j...
About forty years have passed since the inception of the internet. Today, mobile internet services are a pre-determined requisite, at least for urban Indians. What starte...
India has a rich history of innovation. Be it the invention of the digit ‘0’ by Aryabhatta or the exceptional sanitation system of the Indus Valley civilizati...
Today, multinational companies (MNCs) from the USA, Europe as well as the Asia Pacific region are increasingly setting up their research and technology centers in India. ...
India and Colombia’s diplomatic relations date back to the year 1959. Till today, the relations have only been growing stronger, friendlier and cordial with Colomb...
Indian Space Research Organization (ISRO) is counted amongst the top six Government space agencies in the world today. Its vision to 'harness space technology for national ...
The Government e-Marketplace (GeM) is a national public procurement platform in India that was launched about two years back, in August 2016. Till date, the platform cla...
Darwinbox: Redefining HR
Darwinbox is a comprehensive and integrated Human Resource (HR) software that provides a one-stop solution to all the technical aspects of the HR department. From recruitment to performance management and to exit management, Darwinbox takes care of all the HR related needs across the employee life cycle including payroll,...