Indian Pharma Sector wins over the globe

GROWTH OF INDIAN PHARMA INDUSTRY

The fact which might not have been discussed much is that Indian pharmaceutical sector supplies over 50% of the global demand for various vaccines, 40% of the generic demand for US and 25% of all medicines for UK. 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. In terms of overall revenue, the Indian pharmaceutical market increased by 13.9% in January 2022. India is the largest producer of vaccines worldwide, accounting for ~60% of the total vaccines, as of 2021. 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.

The Indian Pharmaceuticals sector has seen some major developments, investments and support from the government in the recent past. For Example:

• The Indian drugs and pharmaceuticals sector received cumulative FDIs worth US$ 19.41 billion between April 2000-March 2022.
• Indian drug & pharmaceutical exports stood at US$ 24.60 billion in FY22 and US$ 24.44 billion in FY21.
• In June 2022, Cipla partnered with Drugs for Neglected Diseases initiative (DNDI) to announce the launch of a 4-in-1 antiretroviral treatment for children living with HIV in South Africa.
• In May, 2022, Dr. Reddy’s Laboratories enters into exclusive partnership with HK inno.N Corporation to commercialise novel molecule Tegoprazan in India & select emerging Markets.

As per the Union Budget 2022-23:

• 3,201 crore (US$ 419.2 million) has been set aside for research and Rs. 83,000 crore (US$ 10.86 billion) has been allocated for the Ministry of Health and Family Welfare.
• 37,000 crore (US$ 4.83 billion) has been allocated to the 'National Health Mission’.

WHAT NEXT:

The future of this industry is quite enthralling. India being the 3rd largest pharmaceuticals industry in the world by volume offers a positive growth trajectory in the coming years.

 ‘Pharma Vision 2020’ by the Government’s Department of Pharmaceuticals aims to make India a major hub for end-to-end drug discovery.

Over the next five years, India's medical spending is expected to increase by 9–12% placing it among the top 10 nations worldwide. The ability of companies to orient their product portfolio towards chronic therapies for diseases like cardiovascular, anti-diabetes, anti-depressants, and anti-cancers, which are on the rise, will also play a role in future domestic sales growth. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies.

@ Sanchita Roychowdhury

GOPSAI AVINANDAN SANGHA

Editor