The Indian pharmaceutical industry has a long history of creating and exporting top-notch goods at competitive prices. India is known as the “pharmacy of the world” and is the third-largest producer of pharmaceuticals by volume and the fourteenth-largest producer by value. The majority of units that the US Food and Drug Administration (USFDA) has approved are in India (741 as of August 2021). Generic drugs, OTC medications, Active Pharmaceutical Ingredients (APIs), vaccines, contract research and production, and biosimilar and biologics are just a few of the product categories that Indian pharmaceutical businesses offer. With a volume share of over 20% and a share of vaccine production of 60%, India is the world’s largest supplier of generic drugs. Over 200 countries receive Indian pharmaceutical supplies, and the nation meets more than 40% of generic demand in the US and 25% of prescription drugs in the UK.
Indian Pharma Export
Drug and pharmaceutical exports totaled $24.6 billion in the years 2021–2022, up from $24.44 billion in the years 2020–21. From US$ 11.6 billion to US$ 24.6 billion between 2014 and 22, the Indian pharmaceutical business experienced exponential growth of 103 percent. Despite pandemic-related global supply interruptions and geopolitical uncertainties during the past few years, pharmaceutical exports experienced robust growth.
India’s Edge Over Other Markets
Indian pharmaceutical businesses have consistently set the bar high by providing essential medications at competitive prices to all corners of the world. Over the past few years, exports of pharmaceutical products to emerging nations have increased relative to those to established markets. The Ministry of Commerce and Industry estimates that the Indian pharmaceutical sector is currently worth $50 billion USD. These pharmaceutical firms are superior to their rivals in both established and developing markets because of:
- Facilities with strong infrastructure that meet USFDA and WHO requirements are readily available.
- Low labour costs and lower production costs – Labor costs in developing countries are typically 60–70% cheaper than those in affluent countries, while drug production costs are reduced by 40–70%.
- Reduced R&D costs
- Robust government backing
Category Wise Export Trend
Drug formulation and biologicals, which are pharmaceutical products made from living creatures, account for US$ 18 billion of the country’s total $24.6 billion in exports (drug formulation: several chemical substances, such as active ingredients, are mixed to make a finished medical product). Due to the export of vaccines and medications during the pandemic, drug formulation and biologicals climbed from 74% of exports in 2019 to 78% in 2021. Throughout the crisis, India has been shipping vaccinations and necessary generic medications to 71 other countries.
Category wise last Three years
| India’s Category wise ExportsValue in USD Million | ||||
| Category | 2017-18 | 2018-19 | 2019-20 | Growth% |
| Drug formulations & Biologicals | 12747.9 | 14223.5 | 15826.64 | 11.27% |
| Bulk Drugs & Drug intermediates | 3525.65 | 3895.14 | 3882.87 | -0.32% |
| Surgicals | 552.16 | 569.77 | 448.29 | -21.32% |
| Ayush and Herbal Products | 456.12 | 446.12 | 428.09 | -4.04% |
| Grand Total | 17281.81 | 19134.49 | 20585.89 | 7.59% |
Major Pharma Companies In India
India is home to nearly 3,000 pharma companies, seven of which are included in the list of top 100 pharma companies in the world by revenue. Sun Pharma is the largest pharma company in India by revenue, followed by Aurbindo Pharma, Cipla, Dr. Reddy’s Laboratories and Lupin. Top 10 pharma company revenue accounts for US$ 16.2 billion based on FY21 and FY22 revenue.
| Top Pharma Companies in India by Revenue | |||
| Sr No | Company | Global Ranking(Based on Revenue – Top 100) | FY22 Revenue (in US$ Bn) |
| 1 | Sun Pharmaceutical Industries | 44 | 4.32* |
| 2 | Aurobindo Pharma Ltd | 58 | 3.2 |
| 3 | Cipla Ltd | 63 | 2.81 |
| 4 | Dr. Reddy’s Laboratories | 66 | 2.78 |
| 5 | Lupin Ltd | 60 | 2.12 |
| 6 | Zydus Lifesciences | 74 | 1.97 |
| 7 | Divi’s Laboratories | – | 1.16 |
| 8 | Torrent Pharma | – | 1.1 |
| 9 | Biocon Ltd | – | 1.06 |
| 10 | Glenmark | 94 | 0.98* |
Conclusion
India has established itself in the global generic market by producing high-quality goods in large quantities. Exports have increased, largely as a result of sustained innovation during the previous 5–6 decades. As of 2022, 5.92 percent of India’s international exports were pharmaceuticals and medications. With government assistance, the right logistics partner like Shiprocket Cargo and its power of Artificial Intelligence to offer comparative analysis to the customers and make it easier for them. India also has the potential to become a net exporter of APIs, as private parties can set up API plants and ship them to countries that rely on imports. The Indian Economic Survey 2020-21 predicts that the pharmaceutical business will be worth US$ 64 billion by 2024 and US$ 130 billion by 2030.
