Indian pharmaceutical sector supplies over 50% of the global demand for various vaccines, 40% of the generic demand for US and 25% of all medicines for UK. India contributes the second largest share of pharmaceutical and biotech workforce in the world. Pharmaceutical sales grew more than ~9% y-o-y in 2020.
Indian drugs are exported to more than 200 countries in the world, with US being the key market. Generic drugs account for 20% of the global export in terms of volume, making the country the largest provider of generic medicines globally. It is expected to expand even further in the coming years. Pharmaceutical export from India, which include bulk drugs, intermediates, drug formulations, biologicals, Ayush & herbal products and surgical instruments.
With new Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs) In India and Scheme for Promotion of Bulk Drug Parks. Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices and Scheme for Promotion of Medical Device Parks. We envisage more FDI investment and new projects & expansion in capacities. The country’s pharmaceuticals exports are on course to cross US$ 23 billion for the first time this fiscal year after rising 14.85% yoy at US$ 11.78 billion in the first half. The growth is driven by drug formulations and biologicals, whose shipment grew a record 21.85% year-on-year to US$ 8.99 billion in the April-September period as countries around the world turned to India to meet a rise in demand in the midst of the Covid-19 pandemic that in many parts of the world triggered lockdowns and production disruptions.
Indian pharmaceutical industry’s export to the US will get a boost as branded drugs will become Off Patent by 2021-23. Companies are launching Generics version as getting approvals from USFDA. Recently India plans to set up a nearly Rs 1 lakh crore (US$ 1.3 billion) fund to provide boost to companies to manufacture pharmaceutical ingredients domestically by 2023.
Road Ahead
Medicine spending in India is projected to grow 9 12% over the next five years, leading India to become one of the top 10 countries in terms of medicine spending. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies.
BENEFICIARIES : VIVIMED LABS LIMITED, GRANULES INDIA, MARKSANS PHARMA, SOLARA ACTIVEPHARMA, DISHMAN CARBOGEN
