Reference Listed Drug

Pool of Generic Medicine: India

  • February 27, 2023
  • 2 mins read

Major Credentials of the Indian Pharmaceutical Industry:

  • India supplies generic medicines to over 200 countries
  • At the global level, 8 out of 20 Generic companies are from India
  • More than 55% of Exports to Highly Regulated Markets
  • 90% of WHO Pre-Qualified APIs are sourced from India
  • 65 to 70% of WHO’s vaccine demands are sourced from India

Indian pharma industry is widely known for its generic medicines and low-cost vaccines across the world. Over the years the industry has been transformed into a vibrant sector. At present, the Industry ranks third in pharmaceutical production by volume. In recent years, the Indian Pharma sector has enlarged steadily by a CAGR of 9.43%. The sector has been persistently earning a trade surplus. 

According to a report, in the time span of 2020 to 2021, total pharma export was USD 24.35 USD Billion (INR 180555 crore) against the total import of 6.66 USD Billion (INR 49436 crore), thereby spawning a trade surplus of 17.68 USD Billion. Till the end of Sep 2021, total export has been 11.88 USD Billion (INR 87864 crore) as against the total import of 4.66 USD Billion (INR 33636 crore), thereby spawning a trade surplus of 7.22 USD Billion (INR 54228 crore).

The pharma industry in India significantly offers 60,000 generic brands across 60 therapeutic categories. The extensive segments of the Indian Pharma Industry include generic medicinal products, OTC drugs, bulk medicines, vaccines, biosimilars and biologics, contract research & manufacturing.

Indian pharmaceutical companies, enabled by their price competitiveness and top-notch quality, have remarkably made a global mark, with 60% of the world’s vaccines and 20% of generic drugs coming from India. 

Indian Pharmaceutical Industry Scenario:

The pharma industry in India is anticipated to set foot on 65 USD Billion by 2024 and 130 USD Billion by 2030. The industry is currently valued at 50 USD Billion.

India is a leading exporter of Pharmaceuticals, with more than 200 territories served by Indian pharma exports. India supplies over 50% of Africa’s demand for generics, 40% of generic requirements in the US, and 25% of all medicinal products in the United Kingdom.

The industry also significantly accounts for 60% of global vaccine needs and is a salient supplier of DPT (diphtheria, pertussis, tetanus), BCG (Bacille Calmette-Guerin), and Measles vaccines.

A total of 70% of the World Health Organization’s vaccines (according to the essential Immunization schedule) are sourced from India.

The Average Index of Industrial Production of Manufacturing of pharmaceuticals, botanical products, and medicinal chemicals in the time span of 2021 to 2022 is 221.6 and has risen by 1.3%.

For the time span of 2021 to 2022, the export of medicines and pharma products stood at 24.6 USD Billion in comparison to 24.44 USD Billion from 2020 to 2021. The industry witnessed an exponential growth of 103 % from 2014 to 2022 from 11.6 USD Billion to 24.6 USD Billion.

The United States of America, the United Kingdom, South Africa, Russia, and Nigeria are India’s top five export destinations.