INTRODUCTION

India is the largest provider of generic drugs globally and is known for its affordable vaccines and generic
medications. The Indian Pharmaceutical industry is currently ranked third in pharmaceutical production
by volume after evolving over time into a thriving industry growing at a CAGR of 9.43% since the past
nine years. Generic drugs, over-the-counter medications, bulk drugs, vaccines, contract research &
manufacturing, biosimilars, and biologics are some of the major segments of the Indian pharma industry.
India has the most number of pharmaceutical manufacturing facilities that are in compliance with the US
Food and Drug Administration (USFDA) and has 500 API producers that make for around 8% of the
worldwide API market.

Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic
demand in the US and 25% of all medicine in the UK. The domestic pharmaceutical industry includes a
network of 3,000 drug companies and ~10,500 manufacturing units. India enjoys an important position
in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers with a
potential to steer the industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs
used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian
pharmaceutical firms. India is rightfully known as the “pharmacy of the world” due to the low cost and
high quality of its medicines.

Indian pharmaceutical industry is known for its generic medicines and low-cost vaccines globally.
Transformed over the years as a vibrant sector, presently Indian Pharma ranks third in pharmaceutical
production by volume. The Pharmaceutical industry in India is the third largest in the world in terms of
volume and 14th largest in terms of value. The Pharma sector currently contributes to around 1.72% of
the country’s GDP.

According to a recent EY FICCI report, as there has been a growing consensus over providing new
innovative therapies to patients, Indian pharmaceutical market is estimated to touch US$ 130 billion in
value by the end of 2030. Meanwhile, the global market size of pharmaceutical products is estimated to
cross over the US$ 1 trillion mark in 2023.MARKET SIZE

Market size of India pharmaceuticals industry is expected to reach US$ 65 billion by 2024, and ~US$ 130
billion by 2030. According to the government data, the Indian pharmaceutical industry is worth
approximately US$ 50 billion with over US$ 25 billion of the value coming from exports. About 20% of
the global exports in generic drugs are met by India.

India is among the top 12 destinations for biotechnology worldwide and 3rd largest destination for
biotechnology in Asia Pacific. In 2022, India’s Biotechnology industry crossed US$ 80.12 billion, growing
14% from the previous year.
During FY18 to FY23, the Indian pharmaceutical industry logged a compound annual growth rate (CAGR)
of 6-8%, primarily driven by an 8% increase in exports and a 6% rise in the domestic market.

The domestic pharmaceutical industry would likely reach US$ 57 billion by FY25 and see an increase in
operating margins of 100-150 basis points (bps).

The Indian pharmaceutical industry has seen a massive expansion over the last few years and is expected
to reach about 13% of the size of the global pharma market while enhancing its quality, affordability, and
innovation.

The biosimilars market In India is estimated to grow at a compounded annual growth rate (CAGR) of 22%
to become US$ 12 billion by 2025. This would represent almost 20% of the total pharmaceutical market
in India.

India is the 3rd largest producer of API accounting for an 8% share of the Global API Industry. About 500+
different APIs are manufactured in India, and it contributes 57% of APIs to prequalified list of the WHO.

The current market size of the medical devices sector in India is estimated to be US$ 11 billion and its
share in the global medical device market is estimated to be 1.5%.

Indian pharma companies have a substantial share in the prescription market in the US and EU. The
largest number of FDA-approved plants outside the US is in India.

According to the Indian Economic Survey 2021, the domestic market is expected to grow 3x in the next
decade. India’s domestic pharmaceutical market stood at US$ 42 billion in 2021 and is likely to reach US$
65 billion by 2024 and further expand to reach US$ 120-130 billion by 2030. India’s biotechnology
industry comprises biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics.
The Indian biotechnology industry was valued at US$ 70.2 billion in 2020 and is expected to reach US$
150 billion by 2025. India’s medical devices market stood at US$ 10.36 billion in FY20. The market is
expected to increase at a CAGR of 37% from 2020 to 2025 to reach US$ 50 billion. As of August 2021,
CARE Ratings expect India’s pharmaceutical business to develop at an annual rate of ~11% over the next
two years to reach more than US$ 60 billion in value.

In the global pharmaceuticals sector, India is a significant and rising player. India is the world’s largest
supplier of generic medications, accounting for 20% of the worldwide supply by volume and supplying
about 60% of the global vaccination demand. The Indian pharmaceutical sector is worth US$ 42 billion
worldwide. In August 2021, the Indian pharmaceutical market increased at 17.7% annually, up from
13.7% in July 2020. According to India Ratings & Research, the Indian pharmaceutical market revenue is
expected to be over 12% Y-o-Y in FY22.

INVESTMENTS AND RECENT DEVELOPMENTS

The Indian Pharmaceuticals industry plays a prominent role in the global pharmaceuticals industry. India
ranks third worldwide for production by volume and 14th by value.

In this regard the sector has seen a lot of investments and developments in the recent past.

Up to 100%, FDI has been allowed through automatic route for Greenfield pharmaceuticals projects. For
Brownfield pharmaceuticals projects, FDI allowed is up to 74% through automatic route and beyond that
through government approval.

The FDI Inflows in the Indian drugs and pharmaceuticals sector reached US$ 21.46 billion between April
2000-March 2023. This constitutes almost 3.38% of the total FDI inflow received across sectors.

In August 2023, Union Minister for Labour & Employment and Environment, Forest and Climate Change
Mr. Bhupender Yadav launched Chemotherapy Services in 30 ESIC Hospitals across the country.

An MoU was signed on June 4, 2023, between the Indian Pharmacopoeia Commission (IPC), Ministry of
Health & Family Welfare, Government of India and Ministry of Health, Government of Suriname for
Recognition of Indian Pharmacopoeia (IP) in Suriname.

In May 2023, the Ministry of Minority Affairs and the Ministry of Ayush joined hands to advance the
Unani System of Medicine in India.

Prime Minister Mr. Narendra Modi during his Independence Day 2023 speech said that the government
has plans to increase the number of ‘Jan Aushadhi Kendras’ from 10,000 to 25,000.

The Department of Pharmaceuticals will soon launch the Scheme for the Promotion of Research and
Innovation in Pharma (PRIP) MedTech Sector. The scheme has been approved by the Union Cabinet for a
period of five years starting from 2023-24 to 2027-28 with a total outlay of Rs. 5,000 crore (US$ 604.5
million).

Emcure Pharmaceuticals Limited (EPL) becomes the first ever company to launch Orofer FCM 750, a new
extension of its parenteral iron brand containing Ferric carboxymaltose (FCM). The dose is suitable for
the majority of Indian patients with iron deficiency and iron deficiency anemia.

Japanese companies have been invited to invest in the Indian Pharmaceutical and Medical Device
Industry. The cooperation between Pharmaceutical Traders Association and Japan Federation of Medical
Devices Associations of the two countries can contribute to stabilize the global supply-chain especially of
APIs and Medical Devices.

Sun Pharmaceutical Industries Limited announced the successful completion of its acquisition of Concert
Pharmaceuticals, Inc. on March 6, 2023, a late-stage clinical biopharmaceutical company that is
developing deuruxolitinib, a novel, deuterated, oral JAK1/2 inhibitor, for the potential treatment of adult
patients with moderate to severe alopecia areata.

Glenmark Pharmaceuticals Ltd. (Glenmark), an innovation-driven, global pharmaceutical company, is the

Entod Pharmaceuticals launched its new ocular aesthetic range focused on improving eye comfort and
enhancing the aesthetics of the eyes.