Our Country is the largest supplier of generic medicines across the world. The pharmaceutical industry supplies 50% of global demand,& 40% of generic medicines in the US, and 25% of other medicines in the UK. India ranks 3rd position in terms of pharmaceutical products in terms of volume and stands 14th in terms of value.
The domestic Pharma industry includes 3,000 drug manufacturing companies and 10,500 units for manufacturing. India has an important position in the global pharmaceutical supply. The country holds a large number of scientists and engineers with high potential to take the industry ahead.
As per the Indian Economic Survey in 2021, the Domestic market is expected to grow nearly 3 times in the next decade. Our domestic market is estimated at around US$ 41 billion by 2021 and may reach US$ 65 billion by 2024. The biotechnology industry in India was valued earlier in 2019 at US$ 64 billion which is expected to reach up to US$ 150 billion by 2025. Our exports of drugs & pharmaceuticals stood at US$ 22.15 billion in FY21.
With the slogan of PM Mr Narendra Modi “Self Dependent India” and to achieve self-reliance and reduce dependency on imports for essential bulk drugs, the Department of Pharmaceuticals has initiated a PLI scheme in this union budget to promote domestic manufacturing.
Under this Union Budget 2021-22, the Ministry of Health and Family Welfare has allocated a sum of Rs. 73,932 cr. and the Department of Health Research has been allocated with Rs. 2,663 cr.Indian government allocates Rs. 37,130 cr for the ‘National Health Mission’. Prime Minister Atma Nirbhar Swasth Bharat Yojana got an allocation of Rs. 64,180 cr.
The Ministry of AYUSH gets allocation Rs. 2,970 cr. With all such developments and growths, India is moving ahead to be the Pharmaceutical Giant in the upcoming decade. The best example is Covaxin & Covishield which India exports to other countries. That shows India is emerging as a Major Pharmaceutical supplier
The spending on medicines in India is expected to grow approx 9 to 12% in coming next five years, which leads India to become the part top 10 countries in terms of spending on medicines
Moving forward, with better growth in terms of domestic sales which also depends on the ability of companies to align their product portfolio towards other chronic therapies for diseases like cardiovascular, anti-diabetes, antidepressants, and anti-cancers, which gradually spikes up in recent days.
The Government of India has taken various steps to reduce the cost and bring down healthcare expenses. A quick introduction of generic drugs in the market has remained in focus and is expected to benefit pharmaceutical companies in India. Along with the focus on rural health development programs & lifesaving drugs and other preventive vaccines also surge well for the companies.