The Indian Pharmaceutical Industry – 2022

                                                                                                                  Written By : Srividya.

The Indian pharmaceutical sector has developed over time into a robust industry, rising at a CAGR of 9.43% over the past nine years, and is currently ranked third in pharmaceutical output by volume. Some of the key sectors of the Indian pharmaceutical business include generic drugs, over-the-counter medicines, bulk meds, vaccines, contract research & manufacturing, biosimilars, and biologics. India is home to the most US Food and Drug Administration (USFDA)-compliant pharmaceutical production facilities, with 500 API companies accounting for around 8% of the global API market.

Over 50% of the world's demand for various vaccines is met by the Indian pharmaceutical industry, as is 40% of the US market for generic drugs and 25% of the UK market for all medicines. The domestic pharmaceutical sector includes 3,000 drug companies and 10,000 production facilities. India occupies a key position in the global pharmaceutical market. The country also has a big pool of scientists and engineers who could advance the industry to new heights. Currently, Indian pharmaceutical companies provide more than 80% of the antiretroviral medications needed to treat AIDS (Acquired Immune Deficiency Syndrome) throughout the world. India has earned the title of "pharmacy of the world" thanks to the affordable prices and superior quality of its pharmaceutical products.

Market Size

Source: IBEF

 India is the biggest producer of generic drugs in the world, contributing 20% of the total volume supply and 60% of the demand for vaccines worldwide. Worldwide, the pharmaceutical industry in India is valued at $42 billion. The Indian pharmaceutical market grew by 17.7% yearly in August 2021, up from 13.7% in July 2020. India Ratings & Research predicts that the Indian pharmaceutical market would generate over 12% Y-o-Y growth in sales in FY22.

 

India is the world's No. 12 exporter of medical supplies. More than 200 nations throughout the world receive Indian medications for export, with the US serving as the largest market. The country is the world's leading supplier of generic medicines with 20% of global exports made up of generic drugs. In June 2022, Indian pharmaceutical and medicine exports totalled $2,119.08 million USD.

 

With a cumulative outlay of Rs. 6,940 crores (US$ 951.27 million) from FY21 to FY30, the Department of Pharmaceuticals introduced the PLI scheme to boost domestic manufacturing by establishing greenfield facilities with minimal domestic value addition in four discrete "Target Segments." This was done to achieve self-reliance and reduce import dependency on the nation's essential bulk drugs.

India's pharmaceutical sector contributes significantly to the country's exports and has attractive prospects for investment. India also runs a sizable number of facilities that adhere to Good Manufacturing Practices (GMP) standards set by the World Health Organization (WHO) and the United States Food and Drug Administration. Millions of people around the world receive affordable and low-cost generic medications from India (USFDA). India has traditionally retained the top position among countries that make pharmaceuticals. Over the next five years, India's medical spending is expected to increase by 9–12%, making it one of the top 10 countries in the world. Future domestic sales growth will also be influenced by companies' capacity to focus their product portfolios on chronic therapies for diseases including cardiovascular, anti-diabetes, anti-depressants, and anti-cancers, which are on the rise. The Indian government has taken numerous measures to cut costs and lower healthcare costs. The opening of pharmacies that provide low-cost generic medications as well as other government initiatives, such as the National Health Protection Scheme, which aims to provide universal healthcare, the aging population, the rise in chronic diseases, and other factors should all help to strengthen the Indian pharmaceutical industry. The quick entry of generic medications into the market has remained a priority and is anticipated to help Indian pharmaceutical companies. Additionally, the focus on preventive immunizations, life-saving medications, and rural health programs bode well for the pharmaceutical industry.

It’s “the time” for Pharmaceutical business owners to focus on their franchise business expansion and attract Investments, and business partners by franchising their pharmaceutical business. Connect with Sparkleminds today for all your franchise-related queries. Sparkleminds have 500+ franchise successful & satisfied clients, now it’s your turn! Join the successful community to achieve great heights in business. Act now!