The Indian pharmaceutical industry is the world’s 3rd largest by volume and 14th largest in terms
of value. Total Annual Turnover of Pharmaceuticals was Rs. 2,89,998 crore for the year 2019-2020. Total
pharmaceutical exports and import were to the tune of Rs. 1,46,260 crore and Rs. 42,943 crore respectively
in the year 2019-20.
Major Segments of Pharmaceutical Industry are Generic drugs, OTC Medicines and API/Bulk
Drugs, Vaccines, Contract Research & Manufacturing, Biosimilars & Biologics.
India has the second-highest number of US FDA approved plants outside the US. India is a global
leader in the supply of DPT, BCG, and Measles vaccines. India accounts for 60 percent of global vaccine
production, contributing 40 to 70 percent of the WHO demand for Diphtheria, Tetanus and Pertussis
(DPT) and Bacillus Calmette–Guérin (BCG) vaccines, and 90 percent of the WHO demand for the measles
India is the largest provider of generic drugs globally. Access to affordable HIV treatment from
India is one of the greatest success stories in medicine. India is one of the biggest suppliers of low-cost vaccines in the world. Because of the low price and high quality, Indian medicines are preferred worldwide,
thereby rightly making the country the “Pharmacy of the World”. Pharma sector currently contributes to
around 1.72% of the country’s GDP.
India’s pharmaceutical sector forms a major component of the country’s foreign trade, with attractive
avenues and opportunities for investors. India supplies affordable and low-cost generic drugs to millions
of people across the globe and operates a significant number of United States Food and Drug Administration (USFDA) and World Health Organization (WHO) Good Manufacturing Practices (GMP)-compliant plants. India has occupied a premier position among pharmaceutical manufacturing countries of the
India is 3rd largest market for APIs globally, 8% share in Global API Industry, 500+ different APIs
are manufactured in India and it contributes 57% of APIs to prequalified list of the WHO.
Medical device industry in India has the potential to reach $50 bn by 2025. India is the 4th largest
Asian medical devices market after Japan, China, and South Korea and also ranks among the top 20 global
medical device markets in the world
Pharmaceutical is one of the top ten attractive sectors for foreign investment In India. 100% foreign
investment is allowed under automatic route in Medical Devices. Foreign investments in pharmaceutical
greenfield projects are allowed upto 100% under the automatic route and for brownfield pharmaceutical
projects, foreign investment beyond 74% to upto 100% Government approval is required.