HQ Team
February 1, 2023: The Indian pharmaceutical market is estimated to be worth $130 billion by 2030 from an estimated US$ 41 billion in 2021, the Economic Survey, a government report, stated.
The market is forecast to touch $65 billion by 2024, according to the report. India is the third largest producer of pharmaceutical products by volume and 14th by value.
The South Asian nation is the largest provider of generic medicines globally, having a 20% share in global supply by volume. It is the leading vaccine manufacturer globally, with a market share of 60%.
Indian drug exports grew 24% in the financial year ended 2021, driven by Covid-19-induced demand for critical drugs and other supplies made to over 150 countries.
Robust growth
The performance of pharmaceutical exports in the fiscal year ended 2022 “has been robust, “sustaining growth despite the global trade disruptions and drop in demand for Covid-19-related treatments.
Drug and pharmaceutical exports from April-October 2022 were 22% higher than the corresponding pre-pandemic period of the final year of 2020.
Total foreign direct investment in the pharmaceutical sector crossed the $20 billion mark in September 2022. Further, FDI inflows have increased four-fold over five years until September 2022, to US$ 699 million, supported by investor-friendly policies and a positive outlook for the industry.
Government schemes
New Delhi has production-linked incentive schemes for promoting domestic manufacturing for crucial starting materials, drug intermediates, active pharmaceutical ingredients and local manufacturing of medical devices.
Under the scheme, the pharmaceutical sector had a total outlay of INR 150 billion for ten years ending the fiscal year 2029. The government approved 55 actual investments worth INR 186 billion until June 2022.
The government has undertaken various measures to improve the infrastructural facilities of the pharmaceutical sector, according to the pre-budget report.
Strengthening Pharmaceutical Industry
The scheme, Strengthening the Pharmaceutical Industry (SPI), was unveiled on March 11 2022, with a total financial outlay of INR 5 billion for five years until the fiscal year 2026.
First, it aims to strengthen the existing infrastructure facilities by providing financial assistance to pharmaceutical clusters to create shared facilities.
Second, it upgrades the production facilities of micro, small and medium enterprises to meet national and international regulatory standards by providing interest subvention or capital subsidy on their capital loans.
Third, it also promotes knowledge and awareness about the pharmaceutical and medical devices industry by undertaking studies, building databases and bringing industry leaders, academia and policymakers together to share their knowledge and experience.
