Published On : 17-Sep-2023
India is a vital player in the worldwide pharmaceutical and API import-export sector. It stands as the global primary supplier of generic drugs with a 20% share in global supply and produces around 60% of the world's vaccines. The Indian pharmaceutical industry comprises crucial sectors like over-the-counter (OTC) medicines, generics, active pharmaceutical ingredients (APIs), vaccines, etc.
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As the most densely populated nation, India is a global leader in providing safe and effective vaccines like DPT, BCG, and Measles. It boasts the highest count of US FDA-approved facilities outside the USA. The country is known for its capacity to create pharmaceuticals of top-notch quality and cost-effectiveness including making highly reliable medications for HIV and other ailments. In 2021-22, pharmaceutical and API trade made an impressive annual revenue of $41.68 billion and stood as the top exporter of affordable medicines around the world.
According to the Directorate General of Commercial Intelligence and Statistics (DGCI&S) reports India holds a 5.92% share of the global pharmaceutical and drug market. It mainly exports drug formulations and biologics, contributing a substantial 73.31%, followed by drug alternatives. Between April and February 2023, India's exports of drugs and pharmaceuticals reached a value of $22.9 billion. In the fiscal year 2021-22, the nation exported pharmaceutical products worth $24.62 billion despite disruptions in the global supply chain, lockdowns, and reduced manufacturing capacity during COVID-19.
India exports pharmaceutical products to Canada, Africa, the EU, ASEAN, Latin America & Caribbean (LAC), the Middle East, and other European regions. Top export destinations in 2021-22 were the US, UK, South Africa, Russia, and Nigeria. Remarkably, eight prominent global generic drug companies hail from India.
The ‘Pharmaceutical Export Promotion Council of India’ (Pharmexcil) is an official body established by the Indian government to boost the country's pharmaceutical and API industry. Its roles include advising the government, arranging seminars on export matters, hosting business meetings across the globe, and coordinating trade delegations. The council also aids its members in securing Market Access Incentive (MAI) benefits from the government that help promote trade.
Another body is the ‘Department of Pharmaceuticals’, formed in 2008, which concentrates on advancing the national pharmaceutical sector. Its main functions involve ensuring affordable drug availability, effective operations of Central Pharma Undertakings, supporting projects and scheme revivals, managing resources and infrastructure, and overseeing annual budget plans and expenditures.
Supporting this dynamic trade avenue, the Indian government has introduced various schemes to strengthen the pharmaceutical industry. The Strengthening of Pharmaceutical Industry (SPI) scheme focuses on enhancing infrastructure with a budget of Rs. 500 crore. The Production Linked Incentive (PLI) scheme encourages investment and production and the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) provides affordable generic medicines for all at the core levels.
India is a major contributor to the global pharmaceutical industry, producing affordable and high-quality medicines, vaccines, and other healthcare products. It exports to many countries and has government initiatives in place to support and develop the pharmaceutical and APIs export-import trade further.
