In this article, we will discuss India’s Pharma Sector. So, let’s get started.
India’s Pharma Sector
- The World’s Pharmacy: India is the world’s third-largest pharmaceutical producer and is considered ‘pharmacy to the world’. It is the largest provider of generic drugs globally.
- The Indian pharmaceutical industry meets over 50% of global demand for various vaccines, 40% of generic demand in the U.S. and 25% of all medicine in the U.K.
- Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
- Share in the Economy: The Indian pharmaceutical industry is a strategic industry for the nation, with the advantage of scale (at $37 billion in 2019-20, it contributed 1.5% to the GDP directly, with another 3% coming indirectly).
- The industry also has global reach, and is a net foreign exchange earner of more than $10 billion annually.
- Progress in Global Share: In 1969, Indian pharmaceuticals had a 5% share of the market in India, and global pharma had a 95% share. By 2020, it was the reverse, with Indian pharma having an almost 85% share and global, 15%.
- India already contributes over 20% by value to the global generics market, with Indian products contributing over 40% (by volume) of US drugs.