- HOME
- ALL SECTORS
- PHARMACEUTICALS
This page has been last updated on - Dec 27, 2023
Snapshot
Formulating success: The Indian pharmaceutical industry.
The Indian Pharmaceuticals industry plays a prominent role in the global pharmaceuticals industry.
Major segments of Indian Pharmaceutical Industry include generic drugs, OTC medicines, bulk drugs, vaccines, contract research & manufacturing, biosimilars and biologics. India is a global leader in the supply of DPT, BCG, and Measles vaccines.
India is one of the biggest suppliers of low-cost vaccines in the world. India accounts for 60% of global vaccine production, contributing up to 70% of the WHO demand for Diphtheria, Tetanus and Pertussis (DPT) and Bacillus Calmette–Guérin (BCG) vaccines, and 90%of the WHO demand for the measles vaccine.
The nation is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and is the leading vaccine manufacturer globally.India also has the highest number of US-FDA compliant Pharma plants outside of USA and is home to more than 3,000 pharma companies with a strong network of over 10,500 manufacturing facilitiesas well as a highly skilled resource pool.
There are 500 API manufacturers contributing about 8% in the global API Industry. India is the largest supplier of generic medicines. It manufactures about 60,000 different generic brands across 60 therapeutic categories and accounts for 20% of the global supply of generics. Access to affordable HIV treatment from India is one of the greatest success stories in medicine. Because of the low price and high quality, Indian medicines are preferred worldwide, making it “pharmacy of the world”.
100% Foreign Direct Investment (FDI) in the pharmaceuticalsector is allowed under the automatic route for greenfield pharmaceuticals.
100% FDI in the pharmaceutical sector is allowed in brownfield pharmaceuticals; wherein 74% is allowed under the automatic route and thereafter through the government approval route.
For further details, please refer FDI Policy
%
Total FDI inflows
$ Bn
Export of Pharmaceuticals (FY 22-23)
$ Bn
FDI (Apr 2000-Sept 2023)
India accounts for 60% of global vaccine production making it the largest vaccine producer in the world
India is one of the biggest suppliers of low-cost vaccines in the world and is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
The pharmaceutical industry in India is expected to reach $65 Bnby 2024and to $130 Bn by 2030.
The pharmaceutical industry in India is currently valued at $50 Bn.
India is a major exporter of Pharmaceuticals, with over 200+ countries served by Indian pharma exports. India supplies over 50% of Africa’s requirement for generics, ~40% of generic demand in the US and ~25% of all medicine in the UK.
India also accounts for ~60% of global vaccine demand, and is a leading supplier of DPT, BCG and Measles vaccines. 70% of WHO’s vaccines (as per the essential Immunization schedule) are sourced from India.
GROWTH DRIVERS
Government Support
The support under PLI schemes is expected to promote the production of high-value products in the country and increase the value addition in exports as well as generate employment for both skilled and unskilled personnel, estimated at 20,000 direct and 80,000 indirect jobs as a result of growth in the sector. Three bulk drug parks, located in Gujarat, Himachal Pradesh, and Andhra Pradesh should provide a consistent supply of bulk drug active components and will ensure India's drug security.
Medical tourism
Quality services at marginal costs compared to US, Europe, and South Asia
Infrastructure development
India has the highest number of US-FDA compliant plants outside the US
Strong drug manufacturing
Expertise in low cost generic patented drugs as well as end-to-end manufacturing
Strong domestic demand
Launch of the largest National Health Protection Scheme globally
Production Linked Incentive (PLI) Scheme
The Indian pharmaceuticals market is supported by the following Production Linked Incentive Schemes to boost domestic manufacturing capacity, including high-value products across the global supply chain.
1. PLI Scheme for Key Starting Materials (KSMs)/Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) (PLI 1.0) - Under the PLI scheme for Bulk Drugs, the objective is to boost domestic production of 41 select critical bulk drugs in the country. 51 projects have been selected for the 34 notified bulk drugs. Out of this, 22 projects have been commissioned till 31st January 2023. An investment of INR 2019 crores have been reported while employing 1900 persons in the same period.
2. Production-Linked Incentive (PLI) Scheme for Pharmaceuticals d (PLI 2.0) - Under the PLI scheme for Pharmaceuticals, 55 applicants have been selected, including 20 Micro, Small & Medium Enterprises (MSMEs). As of 31st January 2023, sales of about INR 36,000 cr have been reported by the select applicants. The scheme has garnered an investment of INR 16,199 crores by these applicants in the first year of implementation while employing 23,000 persons in the same period.
Scheme Outlay INR 6,940 Cr
PLI for Bulk Drugs
Scheme Outlay INR 15,000 Cr
PLI Scheme for Pharmaceuticals Manufacturing
Ministry
Major Investors
Data On Map
Gallery
Apr 27, 2023PM Modi addresses Republic Summit 2023
Apr 13, 2023New India's Trade Performance by Piyush Goyal, Commerce & Industry Minister
Mar 30, 2023The Spectacular Success of Digital India
Mar 27, 2023PM Modi inaugurates of Sri Madhusudan Sai Institute of Medical Science & Research in Chikkaballapur
Feb 20, 2023PM Modi at the Economic Times Global Business Summit 2023
May 13, 2022PM Modi to Participates in 2nd Global Covid Virtual Summit
Jul 05, 2021PM Modi addresses CoWIN Global Conclave 2021
Jul 01, 2021PM Modi addresses Doctors on National Doctors' Day
May 21, 2021PM Modi's interaction with doctors, paramedical staff and frontline workers of Varanasi
Feb 25, 2021Inaugural Session: India Pharma 2021 & India Medical Device 2021
Feb 18, 2021PM Modi addresses a Workshop on 'COVID-19 Management: Experience, Good Practices and Way Forward'
Feb 10, 2021Curtain Raiser Press Conference on 6th Edition of 'Indian Pharma & India Medical Device 2021'
Feb 08, 2021Udyog Manthan | Industry-led expert panel discussions on Pharma and Medical Devices
Jan 04, 2021Press Conference by Drugs Controller General of India regarding approval of restricted emergency usage of COVID-19 vaccine
Jul 27, 2020Press Conference by Union Minister D. V. Sadananda Gowda & MoS Mansukh Mandaviya to launch schemes for setting up Bulk Drugs and Medical Devices Parks in India
Feb 08, 2021Udyog Manthan | Industry-led expert panel di…Udyog Manthan | Industry-led expert panel discussions on Pharma and Medical Devices
Jan 04, 2021Press Conference by Drugs Controller General…Press Conference by Drugs Controller General of India regarding approval of restricted emergency usage of COVID-19 vaccine
Jul 27, 2020Press Conference by Union Minister D. V. Sad…Press Conference by Union Minister D. V. Sadananda Gowda & MoS Mansukh Mandaviya to launch schemes for setting up Bulk Drugs and Medical Devices Parks in India
Apr 27, 2023PM Modi addresses Republic Summit 2023PM Modi addresses Republic Summit 2023
Apr 13, 2023New India's Trade Performance by Piyush Goya…New India's Trade Performance by Piyush Goyal, Commerce & Industry Minister
Mar 30, 2023The Spectacular Success of Digital IndiaThe Spectacular Success of Digital India
Mar 27, 2023PM Modi inaugurates of Sri Madhusudan Sai In…PM Modi inaugurates of Sri Madhusudan Sai Institute of Medical Science & Research in Chikkaballapur
Feb 20, 2023PM Modi at the Economic Times Global Busines…PM Modi at the Economic Times Global Business Summit 2023
May 13, 2022PM Modi to Participates in 2nd Global Covid …PM Modi to Participates in 2nd Global Covid Virtual Summit
Jul 05, 2021PM Modi addresses CoWIN Global Conclave 2021PM Modi addresses CoWIN Global Conclave 2021
Jul 01, 2021PM Modi addresses Doctors on National Doctor…PM Modi addresses Doctors on National Doctors' Day
May 21, 2021PM Modi's interaction with doctors, paramedi…PM Modi's interaction with doctors, paramedical staff and frontline workers of Varanasi
Feb 25, 2021Inaugural Session: India Pharma 2021 & India…Inaugural Session: India Pharma 2021 & India Medical Device 2021
Feb 18, 2021PM Modi addresses a Workshop on 'COVID-19 Ma…PM Modi addresses a Workshop on 'COVID-19 Management: Experience, Good Practices and Way Forward'
Feb 10, 2021Curtain Raiser Press Conference on 6th Editi…Curtain Raiser Press Conference on 6th Edition of 'Indian Pharma & India Medical Device 2021'
Feb 08, 2021Udyog Manthan | Industry-led expert panel di…Udyog Manthan | Industry-led expert panel discussions on Pharma and Medical Devices
Jan 04, 2021Press Conference by Drugs Controller General…Press Conference by Drugs Controller General of India regarding approval of restricted emergency usage of COVID-19 vaccine
Jul 27, 2020Press Conference by Union Minister D. V. Sad…Press Conference by Union Minister D. V. Sadananda Gowda & MoS Mansukh Mandaviya to launch schemes for setting up Bulk Drugs and Medical Devices Parks in India
Apr 27, 2023PM Modi addresses Republic Summit 2023PM Modi addresses Republic Summit 2023
Apr 13, 2023New India's Trade Performance by Piyush Goya…New India's Trade Performance by Piyush Goyal, Commerce & Industry Minister
Mar 30, 2023The Spectacular Success of Digital IndiaThe Spectacular Success of Digital India
Mar 27, 2023PM Modi inaugurates of Sri Madhusudan Sai In…PM Modi inaugurates of Sri Madhusudan Sai Institute of Medical Science & Research in Chikkaballapur
Feb 20, 2023PM Modi at the Economic Times Global Busines…PM Modi at the Economic Times Global Business Summit 2023
May 13, 2022PM Modi to Participates in 2nd Global Covid …PM Modi to Participates in 2nd Global Covid Virtual Summit
Jul 05, 2021PM Modi addresses CoWIN Global Conclave 2021PM Modi addresses CoWIN Global Conclave 2021
Jul 01, 2021PM Modi addresses Doctors on National Doctor…PM Modi addresses Doctors on National Doctors' Day
May 21, 2021PM Modi's interaction with doctors, paramedi…PM Modi's interaction with doctors, paramedical staff and frontline workers of Varanasi
Feb 25, 2021Inaugural Session: India Pharma 2021 & India…Inaugural Session: India Pharma 2021 & India Medical Device 2021
Feb 18, 2021PM Modi addresses a Workshop on 'COVID-19 Ma…PM Modi addresses a Workshop on 'COVID-19 Management: Experience, Good Practices and Way Forward'
Feb 10, 2021Curtain Raiser Press Conference on 6th Editi…Curtain Raiser Press Conference on 6th Edition of 'Indian Pharma & India Medical Device 2021'
Feb 08, 2021Udyog Manthan | Industry-led expert panel di…Udyog Manthan | Industry-led expert panel discussions on Pharma and Medical Devices
Jan 04, 2021Press Conference by Drugs Controller General…Press Conference by Drugs Controller General of India regarding approval of restricted emergency usage of COVID-19 vaccine
Jul 27, 2020Press Conference by Union Minister D. V. Sad…Press Conference by Union Minister D. V. Sadananda Gowda & MoS Mansukh Mandaviya to launch schemes for setting up Bulk Drugs and Medical Devices Parks in India
Latest News
Latest In Pharmaceuticals
Press Release Oct 06, 2023
Dr Mansukh Mandaviya launches National Policy on Research and Development and Innovation in Pharma-MedTech…
ReportDec 08, 2022
Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme gets extended to Chemicals,…
Press ReleaseDec 10, 2020
Cabinet approves Memorandum of Understanding between India and Suriname on Cooperation in the field of Health…
Press ReleaseNov 04, 2020
Cabinet approves signing of the MoU between India and Israel on cooperation in the field of Health and…
Press ReleaseNov 04, 2020
Cabinet approves signing of the MoU between India and United Kingdom on cooperation in the field of Medical…
Press Release
Year End Review 2023: Department of…
Brochure
Pharmaceuticals Sector
Press Release
Dr Mansukh Mandaviya launches National…
Press Release
Budget 2023: 157 New Nursing Colleges to be…
Press Release
Year End Review of Department of…
Press Release
Uniform Code of Pharmaceutical Marketing…
Press release
Pharmaceutical Technology Upgradation…
Report
Remission of Duties and Taxes on Exported…
Report
Department of Pharmaceuticals Annual Report…
Report
Special Incentives for In Vitro Diagnostic …
Event
Pharma & Medical Devices Startup Grand…
Report
Investment Promotion Reforms in India
Press Release
Cabinet approves Memorandum of Understanding…
Press Release
Cabinet approves signing of the MoU between…
Press Release
Cabinet approves signing of the MoU between…
Report
Helping India Breathe: Ventilator…
Paper
Medicine from the Sky - Brief on Medical…
Investible Projects
Rising Himachal - Manufacturing and…
Event
India Pavilion: Pharmtech & Ingredients Expo…
FAQs
Frequently
Asked Questions
Is export incentive included in the calculation of GMR for the base year?
No, as only the manufacturing revenue of the Applicant/ Group Companies is being considered in the definition of GMR given in clause 2.12 of the Operational Guidelines.
Was it helpful?
YesNo
GMR - Consider a scenario, where the product manufacturing is completed at Factory A in the USA and such product is invoiced to Sales office in Singapore at ex-factory price and finally sold to a thirdparty customer from Singapore at sale price. For calculating GMR whether ex-factory price to be considered or the sale price to the end customer please clarify?
Ex-factory prices, as certified by Statutory Auditor Certificate, will be considered in the instant case.
Was it helpful?
YesNo
For calculating GMR - I goods are procured on a contract manufacturing basis, would the revenue from sales of such products would be counted towards GMR.
In case the sales of products manufactured under contract manufacturing is booked as manufacturing revenue in the books of accounts and Statutory Auditor’s certificate is submitted by the applicant as per the Scheme, the same would be considered for calculating GMR.
Was it helpful?
YesNo
This is regarding a query on the “Group Company” definition as per Pharma PLI Guidelines: The Applicant is a subsidiary of a Pharma Company incorporated in Singapore. There is a chain of about 20 companies in between the Ultimate Holding Company in USA and the Applicant. The query is whether all the entity's turnover will be required to be considered for the purpose of Global Manufacturing revenue (GMR). (i.e) Whether GMR includes revenue of Forward Chain (subsidiary companies) and Backward Chain (Holding Companies). Please note, that it may not be practically possible trace back the entire chain of entities.
As per clause 2.3 of the operational guidelines, Group companies shall mean two or more enterprises which, directly or indirectly, are in a position to: Exercise 26% or more of voting rights in other enterprise; or appoint more than 50% of members of board of directors in the other enterprise. For the purpose of calculation of GMR, only those group companies as defined above, who have booked revenue from the manufacturing of pharmaceutical goods and/or in vitro diagnostic medical devices in their books, shall be allowed. The same shall be certified by a Statutory Auditor.
Was it helpful?
YesNo
Whether sales of goods procured/ manufactured on a loan license/ contract manufacturing basis would be eligible for incentive under the Scheme. Whether trading revenue (P2P) & contract mfg. LLM (Loan License Manufacturing) to be included as part of global manufacturing revenue? P2P Revenue should be excluded while LLM revenue can be included.
In case the sales of products manufactured under contract manufacturing/ LLM is booked as manufacturing revenue in the books of accounts and Statutory Auditor’s certificate is submitted by the applicant as per the Scheme, the same would be considered for calculating GMR. Trading revenue shall not be considered for GMR.
Was it helpful?
YesNo
Invest India closely works with
Government Ministry/ Department
pin
By: Invest India
17 August,01:19 PM
A Memorandum of Understanding (MoU) was signed between the Indian Pharmacopoeia... Visit Page
pin
By: Invest India
12 July,12:46 PM
Department of Pharmaceuticals & Invest India organised a roundtable discussion
Department of Pharmaceuticals & Invest India organised a roundtable discussion... Read More
pin
By: Invest India
01 June,08:58 AM
Laurus Labs invests INR 80 cr in cell & gene therapy firm ImmunoACT
The fresh infusion of capital will enable ImmunoACT to fast-track the scale-up... Visit Page
pin
By: Invest India
22 May,01:40 PM
pin
By: Invest India
25 April,11:56 AM
Serum Institute to double investment in Biocon's unit to $300 million
Serum Institute to double investment in Biocon's unit to $300 mn.
pin
pin
By: Invest India
14 April,06:45 PM
pin
By: Invest India
05 April,11:49 AM
Mankind Pharma is setting up INR 300-cr fertility hormone manufacturing unit in Udaipur
Mankind Pharma is setting up INR 300-cr fertility hormone manufacturing unit in... Visit Page
pin
pin
By: Invest India
28 March,11:38 AM
pin
By: Invest India
28 March,09:58 AM
pin
By: Invest India
17 March,10:24 AM
Domestic pharma industry revenues expected to grow 6-8 pc next fiscal
Domestic pharma industry revenues expected to grow 6-8 pc next fiscal: Icra
pin
By: Invest India
02 March,12:07 PM
Bristol Myers to set up drug development centre in Hyderabad
Bristol Myers to set up drug development centre in Hyderabad
pin
By: Invest India
17 February,12:20 PM
Aurobindo Pharma's three units in Telangana gets VAI classification by USFDA, shares gain
VAI means USFDA will not take regulatory action because the objectionable... Visit Page
pin
Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity