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Growth of Pharma Industry in IndiaFriday October 18, 2019 at 9:45 am
India is the third-largest market for Pharmaceuticals across the globe and is also the largest generic drug provider in the world. Currently, it takes care of 50% of the global demands for different vaccines and also 40% generic demand of the US and 25% demand for medicines in the UK. Even when it comes to combating AIDS globally, India supplies 80% antiretroviral drugs.
Growth in Market Size
In 2017, the net value of the Indian Pharmaceutical sector was US$ 33 billion. It is expected to grow to reach US$ 55 billion over 2015-2020 with a CAGR of 22.4%. India’s exports were worth US$ 17.27 billion in 2018. It has reached US$ 19.14 billion in Financial Year 2019.
India has also received approvals from the US Food and Drug Administration (USFDA) for 304 new Abbreviated New Drug Application.
India’s industry regarding biopharmaceuticals, bio-industry, and bio-services is also expected to grow at an average rate of around 30% a year.
Investments and Recent Developments
The existing FDI policy in the Pharma sector is also being amended by the Cabinet to allow 100% automatic investment for medical device manufacturing.
Investment in R&D by Indian Pharma industries has increased from 5.3% in Financial Year 2012 to 8.5% in Financial Year 2018.
There have been 46 mergers and acquisitions in the Indian Pharma sector in the year 2017 with the compiled worth of the deals being US$ 1.47 billion
In October 2018, the UP govt. made an announcement for setting up 6 pharma parks in Uttar Pradesh saying that it has received a commitment for investment worth US$ 712-855 million already.
The government of India has also unveiled its plans for the Pharma industry as “Pharma vision 2020” to make India into a Global Pharma Leader by reducing approval times and facilitating end-to-end drug manufacturing.