Indian pharmaceutical Industry
Pharmaceutical industry is one of the fastest growing industries in India. By 2020, India is likely to be among the top three pharmaceutical markets by incremental growth and sixth largest market globally in absolute size. Cost of production in India is significantly lower than that of the US and almost half of that of Europe which gives it a competitive edge over others. The Indian pharmaceuticals market increased at a CAGR of 9.4 per cent in 2013 from USD6 billion in 2005, and is expected to expand at a CAGR of 23.9 per cent to USD55 billion by 2020.
Government also provides immense support to the pharmaceutical sector in India. ‘Pharma Vision 2020’ launched by government is aimed at making India a global leader in end-to-end drug manufacture. Through various policies government aims to reduce approval time for new facilities in order to boost investments. In this sector, hundred per cent FDI is allowed under automatic route.
Major Pharmaceutical products exported from India in 2015 include human & animal blood; antisera, vaccines, toxins, micro-organism, pharmaceutical goods, specified sterile products sutures, dressings packaged for medical use, glands & extracts, secretions for organ therapeutic uses; heparin & it, Medicament mixtures.
The potential of Indian pharmaceutical sector can be leveraged by exploring new and enhancing existing trade relations, attracting foreign investments.
Highlights of Indian pharmaceutical Industry
- India’s cost of production of pharmaceutical products is much lower as compared to that of the US and almost half of that of Europe and due to lower cost of treatment India is emerging as a leading destination for medical tourism.
- India accounts for over 10 per cent of the global pharmaceutical production.
- Pharmaceutical industry in India produces over 60,000 generic brands across 60 therapeutic categories.
- The Industry is ranked fifth in the term of attracting FDI.
- The sector also accounts for about 1.4 per cent of the global pharmaceutical industry in value terms and 10 per cent in volume terms