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Overview of the Pharmaceutical Industry in India
The Indian pharmaceutical industry is a significant player on the global stage, known for its production of generic drugs, vaccines, and other pharmaceutical products. It is one of the largest in the world, both in terms of volume and value.
| Aspect | Details |
|---|---|
| Current Market Size | The pharmaceutical industry in India is currently valued at $50 Bn. |
| Future Projections | The Indian pharmaceutical market is expected to reach US$ 130 billion by 2030 and US$ 450 billion by 2047. |
| Global Ranking | 3rd in pharmaceutical production by volume and 14th by value. |
| CAGR | The industry has grown at a CAGR of 9.43% over the past nine years. |
| Global Supply Contribution | – Supplies over 50% of global vaccine demand. – Fulfills 40% of generic drug demand in the US. |
| API Production | India has around 500 Active Pharmaceutical Ingredient (API) producers, contributing to 8% of the global API market. |
| Domestic Industry Size | 3,000 drug companies and 10,500 manufacturing units across the country. |
| Contribution to Global Health | Over 80% of the antiretroviral drugs used globally to combat AIDS are supplied by Indian pharmaceutical firms. |
| GDP Contribution | The pharma sector contributes around 1.72% to India’s GDP. |
| Industry Recognition | Known as the “Pharmacy of the World” for its ability to produce high-quality, low-cost medicines. |
FDI in Pharmaceutical Industry in India
| FDI in Greenfield Pharmaceuticals | 100% Foreign Direct Investment allowed under the automatic route. |
| FDI in Brownfield Pharmaceuticals | 100% FDI allowed, with 74% under the automatic route and the remainder requiring government approval. |
Read More: FDI Policy in India