India is among the leading global producer of generic medicine and vaccine, contributing to 20% of the total global demand by volume in 2018. The country also has a large pool of scientists and engineer who have the potential to steer the industry ahead to an even higher level. Over 80% of the antiretroviral drugs used globally to combat AIDS are supplied by Indian pharmaceutical companies. Data collection and Survey shows medicine spending in India is projected to grow 9-12% over the next five years, which will lead India to become one of the top 10 countries in terms of medicine spending.
The pharma sector is valued to be $33 billion in the year 2017 and is expected to reach $55 billion in the year 2020 with a CAGR of 22.4%. The pharma export from India stood at $15.52 billion in the year 2018-19, according to the IBEF research report. Pharmaceutical exports include drug formulation, biologicals, bulk drugs, intermediates, Ayush & herbal products and surgical. The country has a low cost of production, low R&D costs, innovative scientific manpower, and a large number of national laboratories that have the potential to steer the industry ahead to a higher level.
There are 3000 drug companies and about 10,500 manufacturing units in India. Out of these, 1,400 units are World Health Organization (WHO) good manufacturing practice (GMP) approved; 1,105 have Europe’s certificate of suitability (CEPs); more than 950 matches therapeutic goods administration (TGA) guidelines; and 584 sites are approved by the US Food and Drug Administration (USFDA). Andhra Pradesh, Gujrat, Maharashtra and Goa are the major pharmaceutical cluster in the country. In 2017-18, the export of pharma products worth US$ 17.27 billion, by 2020, the industry estimates the exports to grow by 30 % to reach US$ 20 billion. Important export destination includes UK, South Africa, Russia and Nigeria.