India Pharmaceutical Market 2024–2033

Reports Description

India Pharmaceutical Market was valued at USD 59.63 Billion in 2022 and is expected to reach USD 129.49 Billion by 2032, at a CAGR of 9.48% during the forecast period 2023 – 2032.

Indian Pharmaceutical sector is a global giant in all medical supplies. The Indian pharmaceutical industry holds a significant place in the global economy. It ranks third in volume and fourteenth in value worldwide. India accounts for 60% of global vaccine production making it the largest vaccine producer in the world.

Indian Pharmaceutical industry is composed of generic drugs, OTC medicines, bulk drugs, vaccines, contract research & manufacturing, biosimilar and biologics. India exports pharmaceuticals products and drugs to around 200 countries and territories in the world, including highly regulated markets such as the USA, UK, European Union, Canada etc.

India Pharmaceutical Market: Growth Factors

Indian pharmaceutical industry is mainly driven by various factors such as supportive government policies, and increasing healthcare expansion, growing investment in drug manufacturing and research and development and increasing awareness among people about health.

Supportive government policies and initiatives such as production linked incentives schemes for pharmaceuticals manufacturers, setting up bulk drug parks, pharmaceutical technology upgradation assistance (PTUAS) scheme, the National R&D Policy, and the promotion of research and innovation in Pharma-Medtech (PRIP) scheme are propelling the production and consumption of pharma products and drugs in the country, thereby driving market growth.

The growing expansion of the healthcare sector in India is expected to propel the growth of the pharma industry in India. The healthcare industry in India is growing at a tremendous pace owing to its strengthening coverage, supportive government policies, services and increasing expenditure by public as well as private players.

Additionally, various factors such as the growing incidence of lifestyle diseases, growing demand for affordable healthcare delivery systems due to the increasing healthcare costs, the emergence of telemedicine, rapid health insurance penetration and government initiatives like e-health are propelling the growth of the healthcare industry in India, which in turn driving the growth of pharmaceutical industry.

For instance, the Government of India’s Ayushman Bharat – NHP Scheme’ – the World’s largest government-funded healthcare programme is expected to drive the demand for various pharma products and drugs, thereby driving the market growth.

Recently Government of India’s, Department of Pharmaceuticals launched the Scheme for the Promotion of Research and Innovation in Pharma (PRIP) MedTech Sector. The scheme is implemented for the period of 2023-24 to 2027- 28.

Through this scheme government of India is investing USD 604.5 million to promote domestic pharma production. Such supportive policies are expected to boost the growth of pharmaceutical industry during the forecast period.

The increasing expansion of the healthcare industry in the country is also boosting the growth of pharmaceutical industry. Furthermore, an increasing incidence of lifestyle diseases, rising demand for affordable healthcare delivery systems, technological advancements, the emergence of telemedicine, increase in healthcare insurance penetration are boosting the healthcare industry in the country, which in turn propelling the growth of pharmaceutical industry.

India Pharmaceutical Market: Restraints

Despite strong fundamentals, the Indian Pharmaceutical Industry faces various challenges. Factors such as a high degree of import dependence on Active Pharmaceutical Ingredients (API) and Key Starting Materials (KSMs), stringent government regulations about the production and consumption of drugs, less awareness of the pharma and healthcare industry in rural India, fluctuation in raw materials prices and high transportation and logistics cost are restraining the market growth.

India Pharmaceutical Market: Opportunities

Growing technological advancements and innovations in the healthcare and pharmaceutical sector are expected to create lucrative opportunities for the market during the forecast period. Due the technological advancement India’s pharmaceutical market is in transition.

India’s pharmaceutical sector is primarily known for producing and exporting generic drugs to many countries. Growing adoption of technology by healthcare professionals, particularly doctors, and domestic pharmaceutical manufacturing companies, medical stores and new digital health apps is expected to create lucrative opportunities for market growth during the forecast period.

India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists, pharmacists, doctors and medico engineers with the potential to steer the industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical companies and pharmacist.

In the Global market, India is rightfully known as the pharmacy of the world due to the low cost and high quality of its medicines. Thus, the availability of good human talent at low cost is expected to create lucrative opportunities for pharmaceutical industry in India.

Furthermore, growing innovation in pharma tech typically into research and development (R&D), clinical trials, and sales and marketing is expected to create significant opportunities for the market during the forecast period.

India Pharmaceutical Market: Segmentation Analysis

India Pharmaceutical market is segmented by therapeutic category, by drug type, by distribution channel and by region. By therapeutic category, the market is sub segmented into anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, respiratory, dermatologicals, musculo-skeletal system, nervous system and others.

Among all of these segments, Cardiovascular drug is expected to hold a significant market share during the forecast period owing to increasing incidences of cardiovascular diseases.  In India, ischemic heart disease and stroke are the predominant causes and are responsible for more than 80% of Cardiovascular disease deaths.

Thus, due to growing incidences of cardiovascular diseases the demand for cardiovascular therapy drugs is also increasing, which in turn drives market growth of this segment.

By drug type, India Pharmaceutical market is segmented into prescription drugs and OTC drugs. Among these segments, Prescription drugs held the highest market share in 2022 and is expected to keep its dominance during the forecast period. Prescription drugs include generic drugs and branded drugs.

Generic drug demand is increasing owing to the rapidly expanding healthcare sector in India, the growing incidence of various diseases and increasing health check-ups. Generic drugs are available at a lower cost; they provide an opportunity for savings in drug expenditure in a country. The above mentioned advantages coupled with low-cost of manufacturing in the country, the segment is expected to grow significantly during the forecast period.

Report Scope

India Pharmaceutical Market: Regional Analysis

India Pharmaceutical market is segmented into North India, South India, East India, and West India. Among all these regions, South India held a significant market share of India Pharmaceutical Market in 2022 and is expected to grow at a significant pace during the forecast period.

States like Karnataka, Telangana, Andhra Pradesh, and Kerala are playing a major role in the growth of this region. Hyderabad is considered as pharma hub of India. It accounts for 40% of the total Indian bulk drug production and 50% of the bulk drug exports and is considered the ‘Bulk Drug Capital of India’. Telangana state contributes nearly one-third to India’s production and one-fifth to its exports in the pharmaceutical sector.

West India is expected to emerge as a potential region during the forecast period. States like Maharashtra, Gujrat, and Madhya Pradesh are playing a major role in driving the growth of this region. Gujarat has been the flag bearer of India’s pharma industry and a hub for pharmaceutical manufacturing and exports for years. Maharashtra is also a leading state in pharma manufacturing and consumption.

In North India, Himachal Pradesh is the leading pharma manufacturing and export hub. Himachal Pradesh contains the largest number (25) of contract pharma manufacturing facilities.

India Pharmaceutical Market: Recent Developments

• In May 2023, Emcure Pharmaceuticals Limited (EPL) becomes the first ever company to launch Orofer FCM 750, a new injectable extension of its parenteral iron brand containing Ferric carboxymaltose (FCM). The dose is suitable for the majority of Indian patients with iron deficiency and iron deficiency anemia. Through these new product launches, Emcure pharmaceuticals have strengthened its product portfolio in the market.

• In March 2023, Sun Pharmaceutical Industries Limited successfully acquired Concert Pharmaceuticals, Inc., a late-stage clinical biopharmaceutical company that is developing deuruxolitinib, a novel, deuterated, oral JAK1/2 inhibitor used for the potential treatment of adult patients with moderate to severe alopecia areata. Through this acquisition, Sun Pharma aims to strengthen its market presence and enhance revenues.

• In Jan 2023, Glenmark Pharmaceuticals Ltd. (Glenmark), an innovation-driven, global pharmaceutical company launched an I.V. injection formulation, Akynzeo I.V., in India for the prevention of chemotherapy-induced nausea and vomiting (CINV). Through this new product launch, Glenmark is aiming to increase its market presence in Indian Market.

• In Jan 2023, Entod Pharmaceuticals launched its new ocular aesthetic range focused on improving eye comfort and enhancing the aesthetics of the eyes. Through these new product launches, Entod is aiming to enhance its market presence and revenues in the Indian Market.

List of the prominent players in the India Pharmaceutical Market:

• Abbott
• Aurobindo Pharma Limited
• Biocon Limited
• Cadila Pharmaceuticals
• Cipla Inc.
• Divi’s Laboratories.
• Reddy’s Laboratories Ltd.
• Emcure Pharmaceuticals
• Entod Pharmaceuticals
• Glenmark Pharmaceuticals Ltd. (Glenmark)
• GlaxoSmithKline plc
• Lupin Limited
• Mankind Pharma
• Merck & Co., Inc.
• Novartis AG
• Pfizer Inc
• Sun Pharmaceutical Industries Ltd.
• Torrent Pharma.
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The India Pharmaceutical Market is segmented as follows:

By Therapeutic Category

• Anti-Infectives
• Cardiovascular
• Gastrointestinal
• Anti-Diabetic
• Respiratory
• Dermatologicals
• Musculo-Skeletal System
• Nervous System
• Others

By Drug Type

• Prescription Drug
• OTC Drug

By Distribution Channel

• Online
• Offline