The Indian pharmaceutical industry has come a long way from being an import-dependent to becoming a self-sufficient manufacturer and one of the world’s major exporters. Today, the Indian pharmaceutical business is the world’s third-biggest by volume, with a market value of more than $42 billion.
Top pharma exporters in India export medicines to around 206 countries, with the United States being the most important export destination, followed by Africa and Europe. It is a vaccine production leader, supplying more than 60% of worldwide vaccination demand. The Indian pharmaceutical industry’s goods continue to enhance health outcomes for patients globally, with an export value of $24.44 billion (2020-21). This has been made feasible by the Government of India’s policy initiatives and the entrepreneurialism of Indian business.
The Government of India recognized the pharmaceutical business as a rising sector of the economy in the recent Union Budget 2022, which is predicted to triple in the next decade. The pharmaceutical business is expected to reach $65 billion by 2024, according to the Indian Economic Survey 2021-2022. By 2030, the sector hopes to be worth $120-130 billion. In order to do this, the industry may begin on a strategy of developing India’s worldwide leadership in life sciences while promoting greater local access and affordability.
Let’s see how India is leading the pharma industry.
Top Pharma Exporter in India Leading the Pharma industry
The best Indian pharma companies, such as JoinHub Pharma, have made a global impression by their price competitiveness and high quality, which has resulted in India producing 60% of the world’s vaccines and 20% of generic medications. Another interesting statistic is that around 55 percent of India’s pharmaceutical exports are too highly regulated. Indian pharmaceutical exporters also have a significant presence in the prescription market in the United States and the European Union.
Even after global trade interruptions and a reduction in demand for COVID-19-related medications, the growth of pharmaceutical exports has increased. The trade balance goes in India’s favor, with a USD 15175.81 million surpluses. India is ranked third in terms of output and fourteenth in terms of value. The Indian pharmaceutical industry is currently worth roughly USD 50 billion.
Formulations and biologicals account for around 73.31 percent of our overall exports, followed by bulk medicines and drug intermediates, which account for USD 4437.64 million. The top 5 pharma export destinations for India are the United Kingdom, South Africa, Nigeria, Russia, and the United States.
Despite the COVID crisis, the Indian pharmaceuticals and drugs business had a rapid expansion, with exports reaching USD 24.4 billion, increasing 18 percent year on year. The astonishing export growth accomplishment in 2020-21 was accomplished despite regular lockouts, global supply chain disruptions, and a weak manufacturing sector. As part of the trade accords, India signed a cooperation deal with the UAE and Australia, which will provide Indian pharmaceutical products with greater access to these markets.
Export to America
North America continues to be the biggest market for Indian medicines, accounting for more than 34% of total sales. Exports to the USA, Canada, and Mexico increased by 12.6 percent, 30 percent, and 21.4 percent.
Exports to Africa grew 13.4 percent, compared to 2.24 percent growth in the previous fiscal year. South Africa has emerged as India’s second-largest market for medicines. Exports to the country climbed by 28%, with Nigeria, Kenya, and Tanzania serving as the other key African markets.
Leading the Post-Pandemic World
After making major contributions to generics, the pharmaceutical industry is now set to enhance its innovation and research and development (R&D) abilities in order to deliver cutting-edge medicines at competitive rates. It’s time to transition from “Make in India” to “Discover and Make in India.” The emphasis would be on boosting R&D and innovation, smart manufacturing, fostering policy changes, driving digital transformation, and cultivating useful collaborations.
Foster policy reforms
A robust and efficient regulatory environment, such as having a “single window system,” eliminating several regulatory organizations, and developing precise rules, is critical for a healthy innovation environment. Following the pandemic, it is necessary to continue a conversation between the regulator and the industry, for example, through pre-approval discussions, regular industry meetings, and rolling reviews.
Focus on R&D and innovation
The Indian pharmaceutical industry, which accounts for two-thirds of the world pharmaceutical market, would need to move up the value chain and focus on innovation. By 2047, the Indian pharmaceutical industry must develop a robust innovation pipeline (5-7 novel molecular entities and 10–12 innovation releases per year).
To that end, the business is increasingly branching out into sophisticated generics and specialized pharmaceuticals. The goal is to increase Indian pharma’s significance in biologics, new drug development, and innovation and improve skills in biological sciences, information technology utilization, cell and gene therapy, and other areas focused on patient requirements.
Enhanced patient care, cost-effectiveness, better transparency, improved production, and drug research all require digital transformation. AR/VR, artificial intelligence (AI), machine learning (ML), 3D printing, and additive manufacturing are supporting pharma businesses in speeding up the research and development process, running testing in less time, adding newness to goods, and enhancing production efficiency and compliance. Because of the growing usage of digital technologies, telemedicine, and app-based ecosystems, supply chains are also becoming more patient-centric.
Nurture valuable collaborations
During the COVID 19 outbreak, the government, academia, and pharma businesses supported research efforts. The regular feedback, integrated efforts, sharing, and persistent discussion between industry stakeholders and government authorities worked successfully, and this engagement should continue in the future.
Focus on exports
In the future, it will be vital for the industry to consolidate existing significant export markets while also exploring new ones. In this scenario, Indian embassies overseas might be excellent facilitators. At the same time, policies in India would need to focus on assisting the industry in becoming more competitive in the export market through policy instruments such as RoDTEP and PLIs and incentivizing R&D and innovation in the pharma sector.
The Road Ahead
India has a technological edge and world-class industrial capabilities that have been developed through time. This capability is crucial in regulated and science-driven industries, where the rate of change is likely to accelerate over the next two decades. The ability to adjust quickly will be critical to remaining competitive.
Indian business has proved its dedication to patient welfare, particularly during the epidemic, and will do so in the future. Nonetheless, the key to supplying excellent medications at cheap rates will be to be a technological leader and exploit India’s demographic advantage to become a life sciences hub.
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