The domestic pharmaceutical market has reported total sales of Rs 6,883 crore (US$ 1.12 billion) in the month of July 2013, a growth of 13.5 per cent. The exports of pharmaceuticals from India grew to US$ 14.6 billion in 2012-13 from US$ 6.23 billion in 2006-07, registering a compound annual growth rate (CAGR) of around 15.2 per cent. The Ministry of Commerce has set a target for Indian pharma sector exports of US$ 25 billion by 2014 at an annual growth rate of 25 per cent.
Abbott with total sales of Rs 452 crore (US$ 73.67 million), Cipla with Rs 322 crore (US$ 52.48 million), Sun Pharma with Rs 313 crore (US$ 51.02 million), and Zydus Cadila with Rs 268 crore (US$ 43.69 million) were the fastest growing companies in September 2013. In terms of growth, Sun Pharma (17.8 per cent) is ahead of peers such as Cadila (1.8 per cent), Cipla (0.8 per cent) and McLeod (0.7 per cent).
The cumulative drugs and pharmaceuticals sector has attracted foreign direct investments (FDI) worth US$ 11,391.03 million in the period April 2000-September 2013, according to data published by Department of Industrial Policy and Promotion (DIPP).. Exports to the US rose nearly 32 per cent last year to US$ 4.23 billion. India accounts for nearly 40 per cent of generic drugs and over-the-counter products and 10 per cent of finished dosages used in the US. India's exports of generic drugs have been growing at a rate of 24 per cent over the past four years. The Department of Pharmaceuticals has projected an investment of Rs 3,000 crore (US$ 489.19 million) to set up 10 more National Institute of Pharmaceutical Education and Research (NIPER) over the next few years.
The Government of India has made tax breaks available to the pharmaceutical sector and a weighted tax deduction of 150 per cent for any R&D expenditure incurred. It has also introduced 19 dedicated special economic zones (SEZ) to help stimulate pharmaceutical sector investment across the country. The small and medium enterprises (SMEs) are expected to play a significant role in the growth story of the country's pharmaceutical sector as they contribute 35-40 per cent to the industry in terms of production with a turnover of about Rs 35,000 crore (US$ 5.70 billion).