Indian pharmaceutical industry was the third largest and 14th largest in the world in 2020 by value. The industry supplies ~20% of generic drugs and ~62% of vaccines worldwide. There are approximately 3,000 pharmaceutical companies and 10,500 production units in the country. In addition, the pharmaceutical industry has contributed significantly to India's economic growth and public health outcomes.
Indian pharmaceutical manufacturers have a significant presence in the global supply chain and play an important role in the development of the country's pharmaceutical industry. Domestic companies like Sun Pharmaceutical Industries, Cipla, Lupin, Dr. Reddy's Laboratories, Aurobindo Pharma, Zydus Cadila, Piramal Enterprises, Glenmark Pharmaceuticals and Torrent Pharmaceuticals are major manufacturers that have developed several drugs and collaborated with global players to develop new drugs. .
Revenues of the Indian pharmaceutical industry are expected to reach US$ 41 billion in 2021, driven by strong development capabilities and position in international markets such as North America and Europe. India has emerged as an international hub for generic drug manufacturing due to its large pool of raw materials and skilled workforce.
Incentive Scheme
The Government of India launched the Pharmaceutical Production Linked Incentive Scheme (PLI) to encourage, improve the production of high value products in the country and increase value addition. in exports from the financial year 2020-21 to the financial year 2028-29. The pharmaceutical body monitors this program and has announced incentives worth Rs. 15,000 crore ($2,073 million) to the sector. Currently, India sells medicines to about 200 countries worldwide, but imports valuable proprietary medicines for domestic use. Through the PLI scheme, the government plans to make India's pharmaceutical sector more competitive by reducing import costs.
In the system, the series of pharmaceutical products are divided into three groups:
Category 1: Biopharmaceuticals, complex generic drugs, proprietary or expired drugs, cell-based or gene therapy products, orphan drugs, special empty capsules and complex excipients
Category 2 : active pharmaceuticals ingredients (API), main precursors (KSM) and drug intermediates (DI)
Class 3: Recyclable, autoimmune, anticancer, antidiabetic, antiinfective, cardiovascular, psychotropic and antiretroviral drugs, in vitro diagnostic devices (IVD) and phytopharmaceuticals
Foreign Direct Investment
India's current Foreign Direct Investment (FDI) policy allows a 100% automatic route for new pharmaceutical projects and a 7% automatic route for brownfield projects - over which government approval may still be allowed.
Considering the advantages of establishing a business in India and the market access it opens to investors, the government attracts foreign investment from countries in Latin America and the Caribbean. In addition, pharmaceutical companies based in India have access not only to the domestic market, but also to the US, Japan, EU
The Way Forward...
By providing high-quality drugs in large quantities, the Indian pharmaceutical sector has developed a significant position in the global generic market Through innovative methods and formulations, Maa has built a global reputation as a reliable, high-quality and cost-effective pharmaceutical supplier. The Indian pharmaceutical sector has gained significant market share in developed economies such as the United States (1 in 3 tablets) and the United Kingdom (25% of medicines consumed), making essential medicines affordable and accessible. thanks to its ability to produce high-quality and cheap generic drugs, supported by the structural cost advantages of new manufacturing technologies.
However, general price erosion, increasing competition in the market, tighter regulatory controls, new tax regimes, domestic price controls and dependence on foreign raw materials are some of the current challenges facing the industry. As a result, it is time for the Indian pharmaceutical industry to explore the various opportunities available in the market and use them to shape its future.
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