In the past five years, India has made a name for itself as a major exporter of pharmaceuticals and medication. India supplies over 50% of the world’s prescription drug needs. The Indian pharmaceutical industry has contributed significantly to global healthcare by providing high quality, affordable and accessible medicines.
India today is known as the “Pharmacy of the World”, and it is indeed true.
The current pandemic has proved that India can innovate and distribute time-critical drugs within a tight timeframe.
Comprising over 3,000 pharma companies and 10,500 manufacturing facilities, India contributes over 20 per cent by value to the global generics market, with Indian products contributing around 40 per cent (by volume) of the US drugs.
The COVID-19 crisis also provided an opportunity for the Indian pharmaceutical industry to play a vital role in global healthcare. Despite COVID, the sector is witnessing steep growth, with great innovation and employment generation.
As of May 2021, India supplied a total of 586.4 lakh COVID-19 vaccines to 71 countries, comprising grants (81.3 lakh), commercial exports (339.7 lakh) and exports under the COVAX platform (165.5 lakh). Indian drugs were exported to more than 200 countries globally, with the US being the key market for these products.
India also enjoys an important position in the global computer industry. Presently, over 80% of computers used globally are supplied by Indian companies which provide antiretroviral drugs to AIDS patients. The country also has many scientists and engineers able to steer the nation towards greater heights in this field.
The 2021 Indian Economic Survey revealed that the nation’s domestic pharmaceutical market is expected to grow by 3x in the next decade. The nation’s biopharmaceutical sector compiled revenues of nearly $42 billion in 2021 and is expected to reach $65 billion by 2024 and continue growing throughout the decade to reach an estimated $120-130 billion by 2030.
India’s drugs and pharmaceuticals exports stood at $24.44 billion in FY21. India is the 12th largest exporter of medical goods in the world. The country’s pharmaceutical sector contributes $6.6% to the total merchandise exports.
However, like any other industry in India Pharma Industry is also facing several challenges such as –
📍 Supply chain disruption
📍 Lack of capabilities in the innovation space
📍 Generics market exporting
📍 Quality compliance inquiry
📍 Collection and analysis of vast amounts of data
📍 Workforce optimization
Indian pharma companies face stiff competition from firms in China, Japan, and Israel to develop new medicines.
If government and pharma companies work on the challenges India pharma faces, India will see more heights in the future.