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According to the government data, the Indian pharmaceu4cal industry is worth approximately US$ 50 billion with over US$ 25 billion of the value coming from exports. India exports 20 per cent of the global demand for generic drugs. [3] The figure 1 below gives the size of the Indian pharmaceu4cal industry with projec4ons.

The Indian pharmaceu4cal industry ranks third globally in pharmaceu4cal produc4on by volume and is known for its generic medicines and low-cost vaccines. The sector contributed to around 1.32 per cent of the Gross Value Added (at 2011-12 constant prices) of the Indian economy in 2020-21. The total annual turnover of pharmaceu4cals in the fiscal year 2021-22 was ? 3,44,125 crore (US$ 42.34 billion). Major segments of Indian pharmaceu4cal industry include generic drugs, OTC (over-the-counter) medicines, bulk drugs, vaccines, contract research & manufacturing, biosimilars and biologics.

India is a global leader in the supply of low-cost DPT (diphtheria, tetanus, and pertussis), BCG (Bacillus CalmeXe–Guérin), and Measles vaccines. India accounts for 60 per cent of global vaccine produc4on, contribu4ng 40 to 70 per cent of the WHO demand for DPT and BCG vaccines, and 90 per cent of the WHO demand for the measles vaccine. [4] The sector has been growing at a healthy rate. The trend in annual turnover in the sector over the last five years may be seen in table 1. 

The Ac4ve Pharmaceu4cal Ingredients (APIs), some4mes referred to as drug ac4ves or Bulk drugs, play a crucial role in providing therapeu4c effects in the ul4mate formula4on of a medica4on. According to IQVIA, formerly known as Quin4les and IMS Health, Inc., the worldwide API market reached a valua4on of around US$ 210 billion in 2022, with the small molecule API sector accoun4ng for over US$ 174 billion. The worldwide consump4on of APIs saw a compound annual growth rate (CAGR) of 5 per cent over the last five years and is projected to increase by 6 per cent over the next five years. The API market is propelled by many factors, including the escala4on in chronic illnesses and the growth of the geriatric popula4on. Addi4onally, favorable government regula4ons pertaining to API produc4on, augmented research and development expenditures, and improvements in API manufacturing contribute to the expansion of this market. [5]

Over the last two years, the Indian pharma sector has developed and supplied COVID-19 vaccines and medica4ons worldwide. The Indian vaccine industry created the COVID-19 vaccine u4lizing indigenous technology in conjunc4on with the Indian Council of Medical Research (ICMR) and Na4onal Ins4tute of Virology (NIV) in record 4me.

Some of the major structural factors responsible for the steady growth are ageing of the popula4on, rising lifestyle or chronic diseases, healthcare awareness and insurance penetra4on apart from increasing government spending under various schemes.

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