India is the largest provider of generic drugs in the world. Indian pharmaceutical sector supplies over 50% of the global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK.
India ranks 3rd in terms of pharmaceutical production by volume and 14th by value in the world. The domestic pharmaceutical industry includes a network of 3,000 drug companies and about 10,500 manufacturing units. India supplies about 60% of the global vaccination demand. The Indian pharmaceutical sector is worth US$ 42 billion. About 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
The domestic pharmaceutical market is expected to grow 3x in the next decade. India's domestic pharmaceutical market is at US$ 42 billion in 2021 and likely to reach US$ 65 billion by 2024 and further expand to reach about US$ 120-130 billion by 2030.
The Indian biotechnology industry was valued at US$ 70.2 billion in 2020 and is expected to reach US$ 150 billion by 2025.
India's medical devices market stood at US$ 10.36 billion in FY20. The market is expected to increase at a CAGR of 37% from 2020 to 2025 to reach US$ 50 billion.
According to India Ratings & Research, the Indian pharmaceutical market revenue is expected to be over 12% Y-o-Y in FY22.Pharmaceutical Exports
Indian pharmaceutical exports stood at US$ 24.44 billion in FY21 and US$ 22.21 billion in FY22. India is the 12th largest exporter of medical goods in the world. The country's pharmaceutical sector contributes 6.6% to the total merchandise exports. In 2021, India supplied a total of 586.4 lakh COVID-19 vaccines to 71 countries. Indian drugs are exported to more than 200 countries in the world, with the US being the key market. In FY21, North America was the largest market for India's pharma exports with a 34% share and exports to the U.S., Canada, and Mexico recorded a growth of 12.6%, 30% and 21.4%, respectively.Investments into the Industry
The Indian drugs and pharmaceuticals sector received cumulative FDIs worth US$ 19.19 billion between April 2000-December 2021. The foreign direct investment (FDI) inflows in the Indian drugs and pharmaceuticals sector reached US$ 1.206 billion between April-December 2021.