India’s Pharma Exports in 2021-22
India’s pharma sector recorded its best-ever export performance in 2021-22.
- What is the growth of India’s Pharma sector?
- What is the contribution of India’s pharma sector to the world?
- What is the global ranking of India’s pharma sector?
- What is the current market size of the domestic pharmaceutical industry?
- What are the top destinations for Indian pharma exports?
- What are the reasons for growth in India’s pharma sector?
- How much foreign direct investment (FDI) is allowed in India’s pharmaceutical sector?
What is the growth of India’s Pharma sector?
- India’s pharma sector witnessed a growth of 103% since 2013-14, from Rs. 90, 415 crores in 2013-14 to Rs. 1,83,422 crore in 2021-22.
- India’s pharma exports in 2021-22 sustained positive growth despite the global trade disruptions.
- The trade balance continues to be in India’s favor.
What is the contribution of India’s pharma sector to the world?
- By virtue of price competitiveness and good quality, Indian pharma companies have made a global mark. India is a major exporter of Pharmaceuticals, with 60% of the world’s vaccines and 20% of generic medicines coming from India.
- More than 200+ countries are served by Indian pharma exports.
- India supplies over 50% of Africa’s requirements for generic medicines.
- India 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.
- Thus, India has been serving as the ‘pharmacy of the world’.
What is the global ranking of India’s pharma sector?
The Indian pharmaceutical industry is the world’s 3rd largest by volume and 14th largest in terms of value.
What is the current market size of the domestic pharmaceutical industry?
What are the top destinations for Indian pharma exports?
- India’s top five pharma export destinations are the US, UK, South Africa, Russia, and Nigeria.
- It is noteworthy that around 55% of India’s pharma exports cater to highly regulated markets. Indian pharma companies have a substantial share in the prescription market in the US and European Union (EU).
What are the reasons for growth in India’s pharma sector?
- Cost efficiency: Cost of production is less in India, which helps in competitive pricing.
- Government support: In June 2021, the government announced an additional outlay of Rs. 197,000 crore that will be utilized over five years for the pharmaceutical Production Linked Incentive (PLI) scheme in 13 key sectors such as active pharmaceutical ingredients (APIs), drug intermediaries, etc.
- Increasing investment: The foreign direct investment (FDI) inflows in the Indian drugs and pharmaceuticals sector reached US$ 1.206 billion between April-December 2021.
- Economic drivers: High economic growth along with increasing penetration of health insurance is pushing expenditure on healthcare and medicine in India.
- Strong industry: The domestic pharmaceutical industry includes a network of 3,000 drug companies and around 10,500 manufacturing units. India has mega-production capabilities that adhere to industry standards. India also has a large skilled domestic workforce.
- Quality: The largest number of United States Food and Drug Administration (FDA) approved plants outside the US is in India. Indian exports meet the standards and requirements of highly regulated markets of the USA, UK, European Union, and Canada.
How much foreign direct investment (FDI) is allowed in India’s pharmaceutical sector?
India allows 100% foreign direct investment (FDI) in greenfield (new) pharma projects under the automatic route. For brownfield pharma, or investments in existing companies, up to 74%, FDI is allowed under the automatic route, and approval is required beyond that.
According to the recent Economic Survey, FDI in the pharmaceutical sector has seen a sudden spurt in 2020-21 vis a vis the previous year showing a 200% increase.
Month: Current Affairs - May, 2022
Category: Economy & Banking Current Affairs - 2022
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