Indian Pharma Sector Growth Increase By 3 Times In Next Decade
The pharmaceutical industry in India is currently valued at 41 billion dollars and is predicted to rise by 2024 to 65 billion dollars and 2030 to 120-130 billion dollars. What makes India an emerging global hub for manufacturing generic medicines, according to Economic Survey 2020-2021, is the skilled workers’ availability and a significant base for raw materials. Outside the USA, India is the country with the highest pharma plants that comply with US FDA (more than 262 plants including API). The survey also mentioned that by 2023, the global pharma market exceeds 1.5 trillion dollars.
‘Pharmacy of the world’ is what the coronavirus pandemic has helped India be known as. Between April to October 2020, There was an 18% growth in India’s pharmaceuticals exports, coming up to 11.1 billion dollars in total. During the same time, a year ago, this number was 9.4 billion. Indian pharma sector growth regarding exports has resulted in a share increase from 5.1% in 2019 to 7.3% in 2020 of the April to October period. This makes pharmaceuticals the third-highest exported commodity.
The survey noted that India had become the epicenter for COVID-19 vaccine
manufacturing due to its commitment to the same. According to FDA data, over the past 9 months, Indian companies have acquired almost 45% of total new ANDAs (Abbreviated New Drug Application) approvals. In the coming years, exports rise will be positively impacted by this.However, against the backdrop of Indian pharma sector growth, the country’s dependence on China for API (Active Pharmaceutical Ingredients) and KSM (Key Starting Materials) sourcing was proving to be a weak link in the chain along with its dependance on generics and the USA. To overcome this and enhance India’s capacity to manufacture and export, the PLI (Product Linked Incentive) Scheme has been introduced by the government, identifying pharmaceutical drugs as one of the scheme’s ten major sectors.
Another scheme that has also garnered encouragement from the pharmacy and medical fields is the previously notified PLI scheme for bulk medical devices and drugs that boost APIs, KSMs, medical devices, and DIs (Drug Intermediates). Additionally, a scheme for the promotion of parks for medical devices and bulk drugs has been announced.
This could have a further positive impact on Indian pharma sector growth.
