SECTOR HIGHLIGHTS: PHARMACEUTICALS
1INTRODUCTION
The Indian pharmaceutical industry has contributed immensely not just to Indian but to global healthcare outcomes. India continues to play a significant role in manufacturing various important, high‐quality and cost-efficient medicines for Indian and global markets.
2INDIA’S PRESENCE IN THE GLOBAL MARKET
  • India supplies over 50% of worldwide demand for many vaccines, 40% of generic drugs consumed in the US and 25% of all the medicines distributed in the UK. India caters to 60% of global anti‐retroviral (ARV) drugs and 30% of the annual UNICEF requirement. Affordable ARV drugs from India were a major factor in AIDS patients getting greater access to treatment.
  • Many Indian companies are co-partnering with foreign voluntary organizations for making drugs available to lesser developed countries like Mozambique, Rwanda, South Africa and Tanzania which have about 33% of all people living with AIDS in Africa.
3OVERVIEW OF THE PHARMACEUTICALS INDUSTRY IN INDIA
  • The annual turnover of the Indian pharmaceutical industry is estimated to be about USD 33.8 Bn during the year 2016-17. The Indian pharmaceuticals industry has grown with an average annual growth rate of over 6% during the last 5 years, which is higher than the global average growth rate.
  • Top Indian pharmaceutical companies have received various international regulatory approvals for their plants, from agencies like USFDA, MHRA-UK, TGA-Australia, MCC-South Africa etc. Some of the leading Indian pharmaceutical companies derive about 50% of their turnover from international business.
  • Pharmaceuticals exports have been consistently growing for the last few years. The US and the EU together account for over 90% of the regulated market exports and close to 50% of formulation exports for the domestic companies
4STRENGTHS AND FACTORS CONTRIBUTING TO THIS GROWTH
  • Manufacturers’ strengths in Organic Chemical Synthesis and Process Engineering: The pharmaceuticals industry has shown tremendous progress in terms of infrastructure development, technology base and a wide range of products. The industry has developed excellent GMP Certified (Good Manufacturing Practices) facilities for the production of different dosage forms.
  • Low cost and large scale manufacturing capability in India: India has the second highest number of USFDA approved facilities and labour costs in India are lower than other manufacturing hubs by up to 40%.
  • Stable growth in domestic market consumption: Despite recent headwinds, India’s pharmaceutical market has grown rapidly over the last decade. India is likely to become one of the top 3 pharmaceutical markets by 2030.
  • Increasing demand in global markets: Generic penetration in high value healthcare markets (e.g., US) has grown significantly, with India supplying over 20% of the demand in major geographies
As on October 2018