Page 53 - NPPA full book

The Journey So Far

A series of policy interven ons at right junctures for the past decades have led to the growth of the strong domes c sector. The
CATALAYSING THE INDIAN PHARMACEUTICAL policies allowed a number of small and medium drug manufacturers to enter the market for the first me challenging the big

MANUFACTURING pharma MNCs. Slowly and steadily, these Indian pharma units took an edge in the compe ve domes c market. The

enterpreneurship spirit of Indian companies, along with favourable government policies are the crucial factors that have

established India as the manufacturer of affordable drugs, making them available across the world. The concerted efforts have

made many of India’s leading pharma companies move up the value chain ladder.
ndia with a popula on of 1.43 billion is the largest na on on the planet. It is also the fi h largest economy not only in

nominal terms, but also the third largest in terms of purchasing power parity (PPP) calcula ons. The requirements of the Today, the Indian pharmaceu cal sector is a vibrant bouquet of large, medium and small companies and is home to more than
3000 pharma companies with a strong network of 10,500 manufacturing facili es and a highly skilled manpower resource pool.
IIndian popula on, growing affluence, coupled with the rise in exports has given s mulus to pharma sector and its product
The present-day pharmaceu cal industry is also characterised by the mass produc on of about three dozen drugs, thriving
profile. Medical tourism has also helped raise the domes c demand for pharmaceu cals. This segment alone is expected to amid fierce compe on, and expanding capaci es.

grow to around US$ 10 billion by the end of 2023.

The Pharma MSMEs have been the backbone of India’s journey as the “Pharmacy of the World.” They have contributed
During the last five decades, significant growth has been achieved by the Indian pharma industry both in domes c and global significantly to the growth of the industry by providing manufacturing capabili es, localiza on of produc on, and cost-

markets. From contribu ng just 5% of the medicine consump on in 1969 (95% share with global pharma), the share of “Made in effec ve high-quality APIs and formula ons. With the con nued support of the government, the MSMEs are poised to play an

India” medicines had risen to a robust 80% in 2020. India is also the third-largest global producer of drugs and medicines by even more crucial role in the future of the Indian pharmaceu cal.

volume. The country contributes 3.5% of the total medicines exported globally. Indian medicines reach 200+ countries,

contribu ng to availability of affordable quality medicines, wellness products, bulk drugs and intermediates. The Indian

Pharmaceu cal industry proved its me le during the COVID pandemic.

The pharmaceu cal industry contributes a significant 1.72 % to India’s GDP. The Average Index of Industrial Produc on of

Manufacturing (AIIPM) of pharmaceu cals, medicinal chemicals and botanical products in fiscal 2021-22 stood at 221.6. This

was 1.3 % higher than the previous fiscal year.

In terms of its size, the Indian pharmaceu cal industry is currently valued at US$50 billion. In 2024, the industry is expected to

grow to US$65 billion and has the bold vision of reaching ~ US$ 120-130 billion by 2030. Exports are es mated to touch US$57 Plant of BDR, Vadodra, Gujarat

billion by 2030.

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