The rise of Indian pharmaceutical export
India is one of the leading exporters of generic medicines to markets of nations such as Russia, UK, US etc and since past few years, it is also expanding its base to markets such as Brazil, Japan, Canada.
India holds an eminent position in global pharmaceutical industry. With the broadest range of medicines available for export and the largest array of approved pharmaceutical manufacturing facilities, it will soon become the world leader of pharmaceutical export.
Taking in terms of volume, the Indian pharmaceutical sector accounts for approximately 3.4-3.8 per cent of the global pharmaceutical industry. In terms of volume the share is 10%. Experts say it will grow to US $100 billion by 2025 and the market will rise to US$ 55 billion by 2020. Internal factors also play a prominent part in the rise Indian pharmaceutical industry which further adds to the existing competition on the domestic front.
According to report released by Department of Industrial Policy and Promotion (DIPP), some of the big investments in Indian pharmaceutical industry are as follows:
- As branded drugs which cost around US$ 55 billion will become off-patent during 2017-19, the export of Indian pharmaceutical industry to the US will upsurge.
- Due to major deals in pharmaceutical sector, private equity and venture capital(PE-VC) in this sector have grown at 38% per cent between January - June 2017
What statistics say
If statistics are to be believed, Indian pharmaceutical industry contributes to approximately 5 percent of the total consumption of generic medicines globally. Not only this, Indian pharmaceutical industry has a major contribution in export growth since 2008.
By setting up regional offices, subsidiary companies or taken over local companies in other nations, the large players of Indian pharmaceutical industry have successfully bagged many favorable opportunities of growth. Moreover, many have also set up manufacturing plants in developed nations. All these activities have made Indian pharmaceutical industry to have a sound global presence.
As per the reports released by IBEF and Pharmexil, the consumption of Indian pharmaceutical export contributes to around 5 per cent each in top 10 markets of generic drugs, such as Russia, UK, US etc. for the year 2013 and is expected to rise with each passing year. The consumption of Indian pharmaceutical generic drug is also plunging in counties like Germany, Canada, Brazil, France and Japan.