Advantage India
Cost
Efficiency
* India has emerged as the medial tourism hub of the world providing cost-effective treatments with the latest technology enabled by several pathbreaking reforms and provisions.
* Access to affordable HIV treatment from India is one of the greatest success stories in medicine. India is one of the biggest suppliers of low-cost vaccines in the world.
* Because of the low price and high quality, Indian medicines are preferred worldwide, thereby rightly making the country the ‘Pharmacy of the World’.
* India has been traditionally quite strong in the pharma sector, with a low cost of manufacturing (30%–35% lower than in the US and Europe), cost-efficient R&D (about 87% less than in developed markets), and cheap skilled labour.
Economic
Drivers
* The total market size of the Indian Pharma Industry is expected to reach US$ 130 billion by 2030 and US$ 450 billion market by 2047.
* Indian pharmaceutical companies are projected to achieve a revenue growth of 9-11% in FY25. This growth is expected to be fueled by robust performances in key markets, including the United States, Europe, and emerging regions.
* India has the largest number of USFDA-compliant pharmaceutical plants outside the US and over 2,000 WHO-GMP approved facilities, serving demand from 150+ countries worldwide, with 10,500+ manufacturing facilities.
* India is emerging as a key player in the global pharmaceutical supply chain, with its CRDMO industry set to double to Rs. 1,21,282 crore (US$ 14 billion) by 2028, says Macquarie.
* India's medical technology industry is poised to reach exports of up to US$ 20 billion (Rs. 1,69,000) by FY30, according to the CII.
Policy
Support
* The Ministry's scheme “Strengthening of Pharmaceutical Industry (SPI)" with a total financial outlay of Rs. 500 crore (US$ 60.9 million) extends support required to existing pharma clusters and MSMEs across the country to improve their productivity, quality and sustainability.
* The Government has set a target to increase the number of Pradhan Mantri Bhartiya Jan Aushadhi Kendras to 10,500 by March 2025. The product basket of PMBJP comprises 1,451 drugs and 240 surgical instruments.
* The PLI scheme for pharmaceuticals is being implemented with a total outlay of the Rs. 15,000 crore (US$ 2.04 billion) spanning from 2020-21 to 2028-29, to boost India's manufacturing capacity, elevate investment, and diversify product offerings in the sector.
* The Indian government disbursed Rs. 604 crore (US$ 69.76 million) under the Production-Linked Incentive (PLI) scheme for the pharma sector during H1 of FY25.
Increasing
Investment
* Up to 100%, FDI has been allowed through automatic route for Greenfield pharmaceuticals projects. For Brownfield pharmaceuticals projects, FDI allowed is up to 74% through automatic route and beyond that through government approval.
* The FDI equity inflow in the Drugs and Pharmaceuticals industry is Rs. 2,01,347 crore (US$ 23.04 billion) during the period April 2000-September 2024.
* The Union Budget 2025-26 proposes to allocate Rs. 5,268.72 crore (US$ 602.90 million) for the Department of Pharmaceuticals (DoP), around 28.8% higher than the Rs. 4,089.95 crore (US$ 468.01 million) Budget Estimates (BE) for the FY25.
Sun Pharmaceuticals
Sun Pharmaceuticals is the largest pharmaceutical company from India and the fifth largest specialty generic company in the world. It has capabilities across dosage forms like injectables, sprays, ointments, creams, liquids, tablets, and capsules. Its businesses include producing generics, branded generics, speciality, over the counter (OTC) products, anti-retrovirals (ARVs), active pharmaceutical ingredients (APIs) and intermediates in the full range of dosage forms. It also produces specialty APIs. In FY 2021-22, India branded generics contributed the most to company’s sales with 33% share, followed by US business at 30% share.
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Cipla
Cipla is a leading pharmaceutical from India with presence across the world. It was established in 1935 as Chemical Industrial & Pharmaceutical Laboratories Ltd and changed to its current name in 1984. The company has a vast portfolio with more than 1,500 products in the market. The company’s business is divided into three strategic units - APIs, respiratory and Cipla Global Access. Its largest market is India, followed by Africa and North America. The company’s total revenue reached Rs. 25,455 crore (US$ 3.06 billion) in FY24. The company’s total revenue reached Rs. 7,072.97 crore (US$ 809.36 million) in Q3 FY25.
Read MoreLupin Pharmaceuticals
Lupin Ltd. is a leading pharmaceutical company from India and is amongst the top 10 generic companies in the world. It started its business in 1968 and over the years has become one of the largest pharmaceutical companies in India and the world. Its businesses include formulations, Active Pharmaceutical Ingredients (API), drug delivery systems and biotechnology. Lupin’s total revenue stood at Rs. 196,563 million (US$ 2.36 billion) in FY24. Lupin’s total revenue stood at Rs. 57,677.1 million (US$ 660 million) in Q3 FY25.
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