India, a country known as the “pharmacy of the world”, is the largest generic drug provider in the global market. The exports from the country include drug formulations, bulk drugs, herbal products, intermediaries, surgical, biologicals, and Ayush. Over 50% of global demands for various vaccines, 40% of US demands for generics, and 25% of UK demands for all pharmaceuticals are supplied by India.
Over the years, pharma exports from India have made huge progress in the global markets. The nation’s potentially talented scientists, engineers and dedicated workforce are the reason to gear this industry to profits. The current statistics show that India provides over 80% of the antiretroviral drugs used worldwide to fight AIDS.
Key Trends and Predictions:
Based on the on-going profits and predictions globally, by 2025 the pharma sector of India is expected to rise to $ 100 billion, while the market for a medical device is expected to rise to $ 25 billion. On a similar note, the nation’s biotechnology industry that comprises of bio-services, bio-industry, biopharma, bio-agriculture, bioinformatics is expected to increase at an average growth rate of over 30% year on year, i.e. rising to $ 100 billion by 2025.
There were amendments made to the current Foreign Direct Investment (FDI) policy in the pharma sector approved by the Union Cabinet, wherein up to 100% FDI is allowed in the manufacturing of medical devices for certain diseases.
Low cost manufacturing of generics, supplements, intermediaries, medical devices and many other pharmaceutical exporters in India have engaged many foreign investments to set up new production plants. This has led to a consistent growth in the country’s revenue production. Backing the plan, the industry has also gained constant support from the government as it generates employment and contributes to the country’s GDP.
Some of the initiatives taken by the government in support of the above are:
- As per 2019-2020 economic survey, the government expenditure on health (wrt. GDP) surged by 1.6% in FY20 as compared to 1.2% in FY15
- Nearly $ 1.3 billion funds will be invested in companies for domestic manufacturing of pharma ingredients by 2023
- The government has allocated $ 4.88 billion for the National Health Mission beneficial to offer better medical access to rural and urban people
- Under the Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), the government allocated $ 915.72 million for the health insurance scheme
- As per the announcement made in the Union Budget or 2018-2019, The National Health Protection Scheme is the largest government healthcare programme in the world, is expected to grant a cover up of upto Rs. 5 lakhs per family/year to access secondary & tertiary hospitalisation care, benefitting 100 million poor families in India
- The National Digital Health Mission is believed to set policies for pharmaceutical products in India available in the online market to eradicate misuse of drugs and medicines
- Aiming to platform India as the global leader for end-to-end manufacturing of pharmaceuticals, the government of India revealed the ‘Pharma Vision of 2020.’
Moving forward, several steps have been taken to reduce the cost of healthcare access for the public. The Indian government has been keen into engaging top companies across the world to align pharma products with the growing rate of chronic diseases, only to generate domestic sales.