Big Jump Of India’s Pharmaceutical Industry
India’s Pharmaceutical Industry is a prime example of how good policy and rich talent can create.
According to Delloite, Pharmaceutical Industry in India during 1970 stood at around 2200 which increased to 24,000 in 1995. The majority of India’s pharmaceutical firms are small with annual revenues of less than USD 5 million. The rise of the pharmaceutical companies led to an increase of Top Pharmacy Colleges in India to meet the industry’s demand.
In 2021, India’s domestic pharmaceutical market increased at 17.7% annually, up from 13.7% in July 2020. India is on course to reach a market size of USD 65 Billion by 2024 as compared to USD 42 Billion right now. The main export destinations are the USA, UK, Europe and various African countries. It supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK. Globally, India ranks 3rd in terms of pharmaceutical production by volume and 14th by value.
What is Driving the Growth?
India has a huge talent pool with trained pharmaceutical professionals having degrees in B Pharmacy, D Pharmacy, M Pharmacy. The ability of the pharmaceutical industry to develop generic drugs at a much-reduced price is mainly due to trained professionals in the industry.
India has a huge manufacturing base of pharmaceutical products giving it way more flexibility in producing generic drugs. According to India Briefing, India is home to 3000 drug companies and more than 10,000 manufacturing units.
The Impact of Covid-19 on the Pharmaceutical Sector in India
Covid-19 is synonymous with lockdowns, supply chain disruption and a slowdown of business. But the pharmaceutical industry in India withstood the pandemic. It was quick to mobilize resources to deal with the supply chain disruptions despite the imposition of lockdowns and restrictions across the country.
India’s commitment and ability to produce high-quality, low-cost drugs on a massive scale helped the world fight the covid-19 pandemic.
The pharmaceutical companies in India also invested in R&D screening, treatment and prevention of COVID-19 with the launch of indigenous testing kits, treatments, and vaccines.
Future of the Indian Pharmaceutical Industry
The pharmaceutical industry in India is expected to reach USD 120-130 Billion by 2030. The other industries related to the pharmaceutical sector like biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics are likely to reach USD 150 Billion in 2025 as compared to USD 70 Billion in 2020.
India still has a long way to go in terms of exports. The global pharmaceutical trade is expected to reach a size of USD 1-1.3 trillion by 2030, the ambition is to garner a global share of 6-7% from 2.5% right now. India needs to expand existing export corridors and develop new ones in order to reach the target.
