INDIAN PHARMACEUTICAL INDUSTRY AT A GLANCE IN 2022 - 2023
The Indian Pharmaceutical industry is ranked third in pharmaceutical production globally. It is growing at a CAGR of 9.43% for the past nine years. Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK.
The domestic pharmaceutical industry includes a network of 3,000 drug companies and about 10,500 manufacturing units. About 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms. The Pharma sector of India contributes to around 1.72% of the country’s GDP.
Industry ForecastIndian pharmaceutical market is estimated to touch US$ 130 billion in value by 2030.
The Indian pharmaceutical industry is projected to grow at a CAGR of over 10% to reach a size of US$ 130 billion by 2030.
Market sizeMarket size of India pharmaceuticals industry is expected to reach US$ 65 billion by 2024, and about US$ 130 billion by 2030. The Indian pharmaceutical industry is worth approximately US$ 50 billion with over US$ 25 billion of the value coming from exports. About 20% of the global exports in generic drugs are met by India.
Indian pharma companies have a substantial share in the prescription market in the US and EU. The largest number of FDA-approved plants outside the US is in India.
India’s domestic pharmaceutical market stood at US$ 42 billion in 2021 and is likely to reach US$ 65 billion by 2024 and further expand to reach US$ 120-130 billion by 2030. India's pharmaceutical business is to develop at an annual rate of about 11% over the next two years to reach more than US$ 60 billion in value.
India is the world's largest supplier of generic medications, accounting for 20% of the worldwide supply by volume and supplying about 60% of the global vaccination demand. The Indian pharmaceutical sector is worth US$ 42 billion worldwide.
Pharma ExportsThe pharmaceutical exports from India reach more than 200 nations around the world, including the USA, West Europe, Japan, and Australia. India supplied around 45 tonnes and 400 million tablets of hydroxychloroquine to around 114 countries globally.
India’s drugs and pharmaceuticals exports stood at Rs. 2,08,231 crore (US$ 25.3 billion) for FY23.
Industry InvestmentsThe cumulative FDI equity inflow in the Drugs and Pharmaceuticals industry is US$ 21.22 billion during the period April 2000-December 2022.
As per the Union Budget 2022-23: Rs. 3,201 crore (US$ 419.2 million) has been set aside for research and Rs. 83,000 crore (US$ 10.86 billion) has been allocated for the Ministry of Health and Family Welfare. Rs. 37,000 crore (US$ 4.83 billion) has been allocated to the 'National Health Mission’.
