{"id":34236,"date":"2024-12-24T19:30:04","date_gmt":"2024-12-24T14:00:04","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=34236"},"modified":"2025-09-12T19:02:51","modified_gmt":"2025-09-12T13:32:51","slug":"india-pharmaceutical-market-fy-2023-24-valued-at-usd-50-billion","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/24-12-2024\/india-pharmaceutical-market-fy-2023-24-valued-at-usd-50-billion","title":{"rendered":"India\u2019s pharmaceutical Market for FY 2023-24 is Valued at USD 50 Billion"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s pharmaceutical market for <strong>FY 2023-24 <\/strong>is valued at <strong>USD 50 billion<\/strong> with domestic consumption valued at USD 23.5 billion and export valued at USD 26.5 billion.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Pharmaceutical Sector of India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Pharmaceutical industry in India is the <strong>third largest <\/strong>in the world in terms of volume and <strong>14th largest<\/strong> in terms of value.\u00a0<\/li>\n\n\n\n<li><strong>Major segments of industry<\/strong> include generic drugs, OTC medicines, bulk drugs, vaccines, contract research &amp; manufacturing, biosimilars and biologics.\u00a0<\/li>\n\n\n\n<li>The Pharma sector currently contributes to around <strong>1.72% of the country\u2019s GDP.<\/strong><\/li>\n\n\n\n<li>India is the <strong>3rd largest producer of API <\/strong>accounting for an<strong> 8% share <\/strong>of the Global API Industry.\u00a0<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img data-dominant-color=\"d9cac2\" data-has-transparency=\"false\" style=\"--dominant-color: #d9cac2;\" loading=\"lazy\" decoding=\"async\" width=\"469\" height=\"278\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/12\/Pharmaceutical-Sector-of-India.webp\" alt=\"Pharmaceutical-Sector-of-India\" class=\"not-transparent wp-image-34237\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/12\/Pharmaceutical-Sector-of-India.webp 469w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/12\/Pharmaceutical-Sector-of-India-300x178.webp 300w\" sizes=\"auto, (max-width: 469px) 100vw, 469px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Achievements of Pharmaceutical Sector of India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India accounts for <strong>60% of global vaccine production<\/strong>, contributing up to 70% of the WHO demand for <strong>Diphtheria, Tetanus and Pertussis (DPT) <\/strong>and<strong> Bacillus Calmette\u2013Gu\u00e9rin (BCG) vaccines<\/strong>, and 90% of the WHO demand for the measles vaccine.<\/li>\n\n\n\n<li>India supplies over <strong>50% <\/strong>of Africa\u2019s requirement for generics, <strong>~40%<\/strong> of generic demand in the US and <strong>~25%<\/strong> of all medicine in the UK.<\/li>\n\n\n\n<li><strong>The cumulative FDI equity inflow<\/strong> in the Drugs and Pharmaceuticals industry is <strong>US$ 22.52 billion<\/strong> during the period 2000-2024, almost <strong>3.4%<\/strong> of the total inflow received across sectors.<\/li>\n\n\n\n<li>The nation is the <strong>largest provider of generic medicines<\/strong> globally, occupying a <strong>20% share<\/strong> in global supply by volume, and is the leading vaccine manufacturer globally.\n<ul class=\"wp-block-list\">\n<li>India is known as the &#8220;<strong>pharmacy of the world&#8221; <\/strong>due to the low cost and high quality of its medicines.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges for Pharmaceutical Sector of India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Intellectual Property (IP) Protection: <\/strong>India&#8217;s patent laws, especially concerning compulsory licensing and Section 3(d) of the Indian Patent Act, have led to frequent disputes with multinational corporations.\u00a0<\/li>\n\n\n\n<li><strong>Dependence on Imports:<\/strong> APIs and Key Starting Materials (KSMs) import dependence exposes the industry to vulnerabilities related to supply chain disruptions and price fluctuations.<\/li>\n\n\n\n<li><strong>Skilled Human Resource:<\/strong> Indian pharmaceutical industry requires a highly skilled workforce to drive research and development, manage operations, and ensure quality control.<\/li>\n\n\n\n<li><strong>Failing the quality tests: <\/strong>The country\u2019s pharma industry has largely been in denial over quality-related concerns expressed by national and international observers.\n<ul class=\"wp-block-list\">\n<li>According to a <strong>Central Drugs Standard Control Organization (CDSCO) <\/strong>survey in<strong> 2014-2016, a<\/strong>bout five per cent of Indian drugs, several of them manufactured by large pharma companies, failed the quality test.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government initiatives<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The\u00a0 Production Linked Incentive (PLI) scheme<\/strong> for pharmaceuticals is being implemented with a total outlay of <strong>Rs. 15,000 crore (US$ 2.04 billion)<\/strong> spanning from 2020-21 to 2028-29.<\/li>\n\n\n\n<li><strong>Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP): <\/strong>Quality generic medicines are made available at affordable prices to all through dedicated outlets.<\/li>\n\n\n\n<li><strong>100% Foreign Direct Investment (FDI)<\/strong> in the pharmaceutical sector is allowed under the <strong>automatic route for greenfield <\/strong>pharmaceuticals.<\/li>\n\n\n\n<li>The Department of Pharmaceuticals has set up <strong>seven National Institutes of Pharmaceutical Education &amp; Research (NIPERs)<\/strong> as institutes of national importance, which conduct high end research in various pharma specializations.\u00a0<\/li>\n\n\n\n<li>The government has framed a<strong> \u201cNational Policy on Research &amp; Development and Innovation in the Pharma-MedTech Sector in India\u201d in 2023 <\/strong>to encourage R&amp;D in pharmaceuticals and medical devices.<\/li>\n\n\n\n<li><strong>Patents rules :<\/strong> Since 2014, Patents Rules have been amended several times to streamline and simplify filing and processing of patent applications, remove irregularities, redress procedural delays, and complexities in patent granting procedure.<\/li>\n\n\n\n<li><strong>Start-Ups Intellectual Property Protection (SIPP)<\/strong> scheme facilitates protection of Patents, Trademark and Designs by interested Startups, and all Indian innovators using the services of the Technology and Innovation Support Centers (TISCs) established in India.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The pharmaceutical industry in India is a significant part of the nation&#8217;s foreign trade and offers lucrative potential for investors.\u00a0<\/li>\n\n\n\n<li>Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies.\u00a0<\/li>\n\n\n\n<li>In addition, the thrust on rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>New Drugs and Clinical Trials Rules, 2019<\/strong><br>&#8211; <strong>Disposal of clinical trial and new drug applications<\/strong> by way of approval or rejection or seeking further information within a period of <strong>90 days.<\/strong><br>&#8211; In case of application to conduct clinical trial of a new drug or investigational new drug as part of drug discovery, research and manufacture in India, the application is to be disposed of within a period of <strong>30 days.<\/strong><br>&#8211; <strong>Provisions for accelerated\/ expedited approval<\/strong> process in certain situations like unmet need, orphan drugs for rare diseases etc.<br>&#8211; Provisions for pre-submission and post submission meetings of the applicants with CDSCO for formal discussion and case specific regulatory pathway.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Source: <\/strong><a href=\"http:\/\/.gov.in\/PressReleaseIframePage.aspx?PRID=2085345#:~:text=by%20PIB%20Delhi-,India&#039;s%20pharmaceutical%20market%20for%20FY%202023-24%20is%20valued%20at,t\" target=\"_blank\" rel=\"noopener\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s pharmaceutical market for FY 2023-24 is valued at USD 50 billion with domestic consumption valued at USD 23.5 billion and export valued at USD 26.5 billion.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-34236","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/34236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=34236"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/34236\/revisions"}],"predecessor-version":[{"id":53900,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/34236\/revisions\/53900"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=34236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=34236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=34236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}