India Pharmaceutical Market Size

Indian Pharmaceutical Market Analysis

The India Pharmaceutical Market is expected to register a CAGR of 10.70% during the forecast period.

The Indian market witnessed a significant setback due to the outbreak of COVID-19. The growth of the Indian pharmaceutical industry was largely supported by government initiatives and programs. The COVID-19 flare-up also provided an opportunity for Indian pharmaceutical organizations to transform into a supported trade point for gathering drugs and intermediates. In April 2020, as the crisis deepened on a global level, the country lifted the restrictions on the export of 24 pharmaceutical ingredients and medicines. With the sudden emergence of COVID-19, there was a high and growing demand for vaccines as one of the most effective tools to protect against infectious diseases. For instance, in May 2021, under Atmanirbhar Bharat 3.0, Mission COVID Suraksha, the GOI accelerated the development and production of indigenous COVID vaccines "COVAXIN". The Department of Biotechnology, GOI, provided financial support in the form of a grant to vaccine manufacturing facilities for enhanced production capacities, which were expected to reach 10 crore doses per month by September 2021. For these, public-sector companies such as Haffkine Biopharmaceutical Corporation Ltd., IIL Hyderabad, and BIBCOL, Bulandshahr, received assistance from the government. Furthermore, in the post-pandemic scenario, the Indian pharmaceutical market is expected to witness healthy growth owing to the increased demand, digitalization, and surge in domestic production, according to the analysis. For instance, as per the IES 2021 report, in the next decade, the domestic market is expected to grow 3x, thereby boosting the pharmaceutical market over the next few years.

The Indian pharmaceutical sector has a long history of developing and delivering world-class products at affordable costs across the globe. As per IBEF data updated in June 2022, India has the greatest number of US FDA-approved units (741 as of August 2021). Indian pharma companies offer products in segments such as generic drugs, OTC medicines, active pharmaceutical ingredients (APIs), vaccines, contract research and manufacturing, and biosimilars and biologics. For another instance, in 2021, according to the IBEF, for 2021-22, the export of drugs and pharmaceutical products stood at USD 24.6 billion, compared to USD 24.4 billion in the years 2020-21. To encourage investment, the approval time for new facilities has been streamlined. Additionally, as per the same source, the United States is India's primary export market for pharmaceuticals. Moreover, India plays a very crucial role in the generic aspect of the global pharmaceutical industry. For instance, in 2021, India ranked 3rd in volume and 14th in value concerning pharmaceutical production in the global industry, and India supplied over 50% of the global demand for vaccines, 40% of generic demand in the United States, and 25% of all medicinal products in the United Kingdom.

Therefore, an increase in the export of generic medicine and increasing research and development activities will boost market growth over the forecast period. However, the lack of a stable pricing & policy environment and the lack of innovative drug development may hamper the growth of the studied market.