How the Indian Pharma Industry is Growing from Strength to Strength in 2024

It’s 2024 and Indian Pharmaceuticals, today, has risen and positioned itself as one of the major contributors to the Global Pharmaceuticals Industry. The Indian Pharmaceutical Industry is projected to grow at a CAGR of over 10% to reach $130 billion by 2030 and is projected to hit a whopping $450 billion by 2047. The Indian pharmaceutical Industry has gone through a remarkable transformation and is powering through with healthcare advancements worldwide.

Some of the major segments of Indian Pharmaceutical Industry include generic drugs, bulk drugs, vaccines, contract research & manufacturing, biosimilars and biologics.

Current Statistics of Indian Pharmaceutical Advancements

The COVID-19 pandemic, put the Indian Pharmaceuticals in the spotlight as our country supplied medicines to over 133 countries in the fight against the pandemic. But that is just the tip of the iceberg of what India has achieved over the last few years in the Pharma Industry.

A global leader in vaccine production

India’s vaccines and biotech sector, valued at $4 billion in 2023 contributes 15% to the healthcare innovation market. Source: The economic times

• India is one of the biggest suppliers of low-cost vaccines in the world, contributing to 60% of global vaccine production.
• 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.

Source: Invest India

Largest provider of Generic medicines

• India manufactures and supplies about 60,000 generic brand medicines across 60 therapeutic categories, accounting for 20% of the global supply of generic medicines.
• We are known to provide the most affordable HIV treatments to patients.

Source: Invest India

The low price and high-quality medicines produced by India not only makes it one of the most preferred worldwide but has also earned a reputed name called “pharmacy of the world.”

Growth drivers of the Indian Pharmaceutical Industry

1. Government Support

The Indian government has introduced PLI schemes under which there will be an increased production in expensive, maximum valued products; generation of about 100,000 jobs in the sector; consistent supply of bulk API (Active Pharmaceutical Ingredients) ensuring India’s drug security.

Investment Outlay supporting manufacturing of medicines

• PLI for Bulk Drugs (INR 6,940 Cr)
• PLI for Pharmaceuticals manufacturing (INR 15,000 Cr)

2. Low-cost medicines causing an influx of patients

Not just low cost but excellent quality medicines as compared to US, Europe and South Africa has given rise to medical tourism.

3. Highly developed infrastructure

Highest number of US-FDA compliant Pharma plants outside of USA supporting the functioning of about 3000 pharma companies.

4. High capabilities in drug manufacturing

Largest manufacturers of low-cost generic medicines with the infrastructure and capability of carrying out end-to-end manufacturing.

5. Rising consumerization of healthcare

Patients are less and less patient while it comes to waiting for healthcare; tech companies digitalizing the patient journey.

6. Reconfigured healthcare value globally

Healthcare facilities are rapidly moving towards meeting patients changing needs, improving quality, safety, and achieving better outcomes.

Investment Opportunities in Pharmaceuticals

There have been major investments in the Indian Pharmaceutical Industry spread out across many states. A number of projects with big chunks of investments is already have already been planned are ready to go.

Source: Invest India

Changes in the Supply chain management

With globalization, technological advancements and rising healthcare product demand, the pharmaceutical supply chain of India has drastically transformed.

Importance of Supply chain diversification

Post the pandemic, there has been a greater focus on diversifying the supply chain by investing in multiple location including India. Companies are moving away from the overreliance in China, as it has been identified as a threat in the long run.

Some of the key focus areas to enhance the pharmaceutical efforts are-

• Automation and digitization
• Producing top notch quality and building credibility
• Adoption of sustainable practices

Adoption of AI technology

• Data traceability throughout the pharmaceutical supply chain will act as a cornerstone of supply chain strategy.
• Analysing data by leveraging artificial intelligence will help meet the rising market demand and cut through the possibility of disruptions.

Integrating AI efficiently into supply chain operations will prove to be a competitive advantage for companies.

Navigating the roadblocks

1. Regulatory compliance

India is an extremely diverse country with different states presenting different compliances. Unfortunately for the supply chain industry this is one of the biggest challenges they need to navigate and with caution. By ensuring compliance with necessary requirements companies can operate a lot more efficiently.

2. Infrastructure insufficiency

While there has been progress in the infrastructure sector in the past few years, it still isn’t enough. India is constantly struggling with.

• inadequate transportation
• poor road connectivity
• limited cold chain facilities
• Issues related to counterfeit drugs expiry and pilferage
• backward logistics infrastructure hampering the movement of goods and services.

Right investments can fuel sustainability and growth

Investment in technology enabled logistics facilities can help turn this around and ensure ambitious standards of drug storage and handling. For example,

• Optimizing the size of the packages can help costs on storage and shipping and promote sustainability.
• Deployment of advanced refrigeration systems, GPS tracking can help maintain ideal conditions during the entire transportation.
• Digitalization, use of global standards and implementation of robust tracking systems can increase end-to-end supply chain visibility.

Closing Words

On the whole, the pharmaceutical and healthcare sector in India harbours vast opportunities for expansion, especially in innovation, research, early detection, and cutting-edge solutions such as robotics-assisted surgery. By focussing their energy on these strengths, embracing technological progress, and promoting collaboration, the Indian pharmaceutical industry can persist in its game changing role in shaping the trajectory of healthcare provision, both at home and on the global front.