The Indian pharmaceutical industry is on a remarkable growth trajectory. India ranks topmost among suppliers of generic drugs globally. In recent years, India has become the hub for outsourced manufacturing as well as drug discovery and development for global companies. India meets over 50% of vaccine demand across the world. It also supplies over 40% of generic drugs in the United States and 25% of all medicines in the United Kingdom. The industry is looking ahead at rapid growth owing to foreign investments, joint ventures and robust regulatory framework.
The pharmaceutical industry in India was valued at USD 33 billion in 2017 with an estimated reach of USD 55 billion by 2020 at a CAGR of 22.4 per cent. The domestic market registered a turnover of USD 18.12 billion in 2018 from USD 17.87billion in 2017. The largest segment in the industry comprises of generic medicines which hold 71% market share. Gastro-Intestinal (11.5%), Anti-Infectives (13.6%), Cardiac (12.4%) recorded the largest turnover in 2018. Indian drugs are exported to 200 countries around the world and account for 20% of overall global exports volume. India’s export revenues from pharmaceutical industry increased to USD 19.14 billion in 2019 from USD 17.27 billion in 2018. India contributes 30% by volume and 10% by value to the USD 80 billion US generic market. By 2021, the generic market is estimated to reach USD 88 billion.
USFDA approved 304 Abbreviated New Drug Application (ANDA) from Indian companies in 2017. The biotechnology industry, including bio-industry, bio-agriculture, bio-services, bio-pharmaceuticals and bioinformatics, is expected to reach USD 100 billion by 2025 at a growth rate of 30 % per year. Medicine spending is growing at a rate of 9-12% in India. India is expected to be among the top 10 countries concerning medicine spending by 2024. The government has allocated a total of USD 9 billion for the Health and Family Welfare sector in the Union Budget 2019.
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