The Indian pharmaceutical (pharma) industry has an annual revenue of US$38 billion – globally it’s the third largest in the world by volume and 11th by value. It comprises over 3,000 pharma companies and 10,500 manufacturing facilities.
Active Pharmaceutical Ingredient (API) manufacturers – APIs comprise the substance or mixtures of substances that produce the intended pharmacological activity or other effect of the drug, and account for around 20 per cent of India’s pharma exports.
Formulation manufacturers – is the process in which various chemical substances, including active ingredients, are combined to form a final medicinal product. From April 2018 to March 2019, the Indian pharma industry exported US$14 billion worth of drug formulations (including biologics).
Biotechnology companies – including biopharma, bio-services, bio-agriculture, bio-industrial and bio-informatics. Biopharma has the largest share (62 per cent) of the biotechnology market.
Contract Research and Manufacturing Services – pharma companies have turned increasingly to outsourcing to reduce research and manufacturing costs. This business segment grew by 48 per cent between 2015 and 2018, and is expected to grow by over 25 per cent from 2018 to 2021.‘The pharmacy of the world?’
Over the past 120 years, the Indian pharma industry has become known as ‘pharmacy of the world’ due to its vital role in delivering cost-effective and high-quality generic drugs globally. Generic drugs comprise the largest segment (71 per cent); over-the-counter and patented drugs account for the remaining 21 and nine per cent, respectively.