India is a prominent and rapidly growing presence in global pharmaceuticals. It is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and also supplies 62% of global demand for vaccines. India ranks 3rd worldwide for production by volume and 10th by value.
India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The API industry is ranked third largest in the world contributing 57% of APIs to prequalified list of the WHO.
The domestic pharmaceuticals market turnover reached $20.03 bn in 2019, up 9.3% from 2018, growing as penetration of health insurance and pharmacies rise.
- From 2018-19, India’s pharmaceuticals exports were worth $19.3 bn with a growth of 10.72% year on year
- India holds 12% of all global manufacturing sites catering to US market
- The cost of manufacturing in India is approximately 33% lower than that of the US
100% Foreign Direct Investment (FDI) is allowed under the automatic route for greenfield pharma.
100% FDI is allowed in brownfield pharma; wherein 74% is allowed under the automatic route and thereafter through government approval route