Delve into India’s ambition to lead the global pharmaceutical industry, highlighting key strengths, growth strategies, challenges, and regulatory frameworks.
Amidst the trials brought forth by the Covid-19 pandemic, the pharmaceutical sector in India has shown remarkable strength, standing apart from numerous other industries and economies globally.
Amidst this crucial period, the proactive actions taken by the Indian government to bolster the expansion of the domestic pharmaceutical sector have played a pivotal role. One such initiative is the approval of a Rs 15,000 crore production-linked incentive (PLI) scheme specifically aimed at bolstering the pharmaceutical industry. Additionally, the government has greenlit 33 applications amounting to Rs 5,082.65 crore under a separate PLI scheme targeting Active Pharmaceutical Ingredients (APIs). These initiatives have provided much-needed impetus to the pharmaceutical sector, fostering growth and innovation.
India’s status as the largest supplier of generic drugs globally further underscores its resilience and significance in the pharmaceutical landscape. Indian pharmaceutical companies play a pivotal role in meeting over half of the world’s demand for vaccines and approximately 40% of the generic drug demand in the United States. Remarkably, statistics from container logistics company Maersk reveal a substantial surge in pharmaceutical exports from India in 2020, with the fourth quarter alone witnessing a staggering 47% increase in volumes compared to the same period in 2019. This surge in exports underscores the robustness and competitiveness of India’s pharmaceutical industry on the global stage.
Moreover, recent insights from a manufacturing survey conducted by Ficci indicate that the pharmaceutical sector is poised for rapid growth in the forthcoming years. This optimistic outlook reaffirms the resilience and potential of India’s pharmaceutical industry, positioning it as a key driver of economic growth and healthcare advancement in the post-pandemic era.
Recent data from IMS total sales audit indicates a 2.6 percent growth in the Indian pharma market in February, a decrease from the 6.6 percent growth observed in January, as per a report by Emkay Global Financial Services.
The Indian Pharma Market (IPM) witnessed a 3.4 percent growth in terms of moving annual total (MAT), driven mainly by a 3.4 percent expansion in new product offerings, as a 4.3 percent rise in pricing was counterbalanced by a decline in volume.
Forecasts from the India Brand Equity Foundation (IBEF) project the Indian pharmaceutical sector to reach $100 billion by 2025. In response, the industry has been diligently enhancing infrastructure and scaling up operations to cater to both domestic and international demands.
For instance, Piramal Pharma Solutions announced a $32 million investment in December to enlarge its Michigan facility in the United States, augmenting capacity and introducing new capabilities for active pharmaceutical ingredient (API) development and manufacturing. Additionally, Indian Immunologicals (IIL), a vaccine manufacturer, initiated the construction of a new viral antigen manufacturing plant near Hyderabad in November 2020, with an investment of Rs 75 crore.
The push towards self-sufficiency in APIs is expected to significantly benefit the Indian pharmaceutical sector, which has historically relied heavily on API imports from China. Emkay, referencing Govind Jaju, the founder of Suingora Consultants and an experienced professional in the API industry, emphasized that companies worldwide, especially those based in the US and Europe, are actively seeking to broaden their supply chains beyond China.
According to the report, these companies have three alternatives: internal API production, outsourcing to US or European firms, or sourcing from a developing country outside of China. However, the first two options may not be feasible for their entire product portfolio, leaving the third option as the preferred choice. Given India’s extensive experience in supplying APIs and formulations globally, coupled with superior quality, regulatory compliance, and reliable supply chains, Indian companies are well-positioned to capitalize on this opportunity.
With a strong focus on the pharmaceutical sector, particularly APIs, India is on track to emerge as a major global pharmaceutical supplier, contingent upon the implementation of supportive policies to address industry requirements.
Global Pharmaceutical
Global Pharmaceutical
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