India's pharmaceutical exports surged by 8.36% in July 2024, reaching $2.31 billion for the month, as demand for cost-effective generic medicines continues to rise in advanced markets. This marks a continuation of the upward trend seen in the 2023-24 fiscal year, where exports grew by 9.67% year-on-year to $27.9 billion. The growth momentum is expected to persist, solidifying India's position as a key player in the global pharmaceutical market.
India's pharmaceutical industry is expanding its global footprint, driven by increasing demand for cost-effective generic medicines and robust government support. As the sector continues to grow, India's role as a leading global pharmaceutical hub is set to strengthen further.
The United States remains India's largest market for pharmaceutical exports, accounting for over 31% of total shipments. The United Kingdom and the Netherlands also play significant roles, each contributing around 3% to India's export volume. Additionally, India is making inroads into new markets, including Ireland and Sweden, while maintaining strong ties with established markets like Brazil and South Africa.
India's pharmaceutical sector has strengthened its global presence, with its export share increasing to 6.4% in the 2023-24 fiscal year, up from 5.8% in 2018-19. The sector's export value has grown from $19.1 billion to $27.9 billion during this period, reflecting its rising influence in the global pharmaceutical landscape.
According to the latest Economic Survey, India's pharmaceutical market is valued at $50 billion, making it the third-largest in the world by volume. Dubbed the "pharmacy of the world," India supplies approximately 60,000 generic brands across 60 therapeutic categories and accounts for 20% of global generic drug exports. Notably, eight of the world's top 20 generic pharmaceutical companies are based in India.
Looking ahead, India's pharmaceutical industry is projected to reach $65 billion by 2024 and could potentially double to $130 billion by 2030. The sector's growth is supported by high compliance standards, with 703 U.S. Food and Drug Administration (US FDA)-approved facilities, 386 European Good Manufacturing Practice (GMP)-compliant plants, and 241 World Health Organization GMP-approved plants operating in the country.
In December 2023, India introduced revised manufacturing rules under Schedule-M, bringing its standards in line with global norms and enhancing quality control measures. These reforms are expected to further strengthen the sector's global competitiveness.
The Indian government has implemented strategic initiatives, such as the Production Linked Incentive (PLI) scheme, to bolster domestic manufacturing, particularly in critical areas like bulk drugs and medical devices. The PLI scheme for medical devices has helped narrow the trade deficit, with India now producing advanced equipment like computed tomography (CT) scan machines and magnetic resonance imaging (MRI) machines domestically.
Additionally, the PLI scheme for bulk drugs has approved 48 projects with a committed investment of Rs 3,938.6 crore, aimed at enhancing local manufacturing capabilities.
To further support exporters, especially small and medium-sized enterprises, the government provides financial assistance through the Pharmaceutical Export Promotion Council (Pharmexcil) under the Market Development Assistance and Market Access Initiative Schemes. These efforts are designed to promote Indian pharmaceutical products in international markets, driving continued export growth.
