The Indian pharmaceutical industry now ranks 3rd worldwide by volume of production thereby accounting for around 10% of world’s total pharmaceutical output in terms of volume, according to Srikant Kumar Jena, the Minister of State for Chemicals and Fertilizers, Government of India.
However, India’s pharma industry comes only 14th by value. In term of value of production India accounts for a mere 1.5% in the gloabal pharmaceutical marketplace.
Globally, Indian pharma market ranks 4th in terms of generic production and 17th in terms of export value of bulk actives and dosage forms.
Indian pharma companies export their products to more than 200 countries around the globe including highly regulated markets of USA, West Europe, Japan and Australia.
The industry now produces bulk drugs or active pharmaceutical ingredients (API) belonging to all major therapeutic groups requiring complicated manufacturing technologies.
Formulations in various dosage forms are being produced in GMP compliant facilities. Strong scientific and technical manpower and pioneering work done in process development have made this possible.
Indian pharma market which is now estimated to value over to Rs. 1,00,000 crores (US $ 20 billion), has shown tremendous progress in terms of infrastructure development, technology base creation and a wide range of products, Mr Jena said in a written reply in the Lok Sabha.
Indian pharma has established its presence and determination to flourish in the changing environment.
By making right investment in creating pharma innovation hub in the country, the country can reap the benefits both social and economic which would also include creation of additional high value research jobs, he said.
The global management consulting major Mckinsey and Company has also predicted recently that the Indian pharmaceutical market is expected to touch USD 40 billion by 2015, growing at compounded annual growth rate of nearly 14% in the next few years.
Indian pharma market, which is currently valued at USD 20 billion, could see the figure almost double in next 5 years majorly propelled by the steady growth in the domestic egment. Related story: Indian pharma market sales up despite recession.
The domestic market which is growing at almost 10 to 14 per cent at present itself will provide US$ 20 to 24 billion in 2015 and the exports and contract manufacturing business, which are growing at 10 per cent per annum, will contribute to achieve the predicted growth.
Contract manufacturing business, which registered US$ 4 billion in 2007 is expected to reach 10 billion in 2015, with a 25 per cent growth rate. Contract manufacturing opportunity for India including for the international generic business is forecast to the level of US$ 18 to 20 billion.
Contract manufacturing of core products of multi nationals in India is anotheropportunity for domestic companies as that business itself could add US$ 7 to 8 billion by 2015.
India’s potential in R&D will be between US$ 8 to 10 billion by 2020.
By 2015, the manufacturing opportunity in India including for the international generic business and the contract manufacturing business will be at US$ 18 to 20 billion.