{"id":27367,"date":"2024-12-21T17:29:25","date_gmt":"2024-12-21T17:29:25","guid":{"rendered":"https:\/\/www.class24.study\/current-affairs\/indian-pharmaceutical-sector-global-leadership-for-strategic-development-8802\/"},"modified":"2026-09-10T04:59:02","modified_gmt":"2026-09-10T04:59:02","slug":"indian-pharmaceutical-sector-global-leadership-for-strategic-development-8802","status":"publish","type":"post","link":"https:\/\/www.class24.study\/current-affairs\/indian-pharmaceutical-sector-global-leadership-for-strategic-development-8802\/","title":{"rendered":"Indian Pharmaceutical Sector: Global Leadership for Strategic Development"},"content":{"rendered":"\r\n
\r\n

India is the third-largest producer of pharmaceuticals in the world, with product worth $50 billion in FY 2023-24, $23.5 billion for domestic consumption, and $26.5 billion exported. As the global pharmacy hub, India accounts for 20% of generic medicines, while it contributes for 62% of the global vaccine and 70% of the vaccines supplied WHO\u2019s immunization program.<\/span><\/p>\r\n

The industry specializes in a number of products which include but not limited to the following, Generics, Active Pharmaceutical Ingredients, Vaccines and Biosimilars. The sector has an output of \u20b94,56,246 crores in FY 2022-23 and currently provides employment to more than 9.2 lakh people. India is one of the biggest contributors to global public health as well.<\/span><\/p>\r\n

Through tackling RM&D through policies, the government aims at achieving the market of $ 130 billion by 2030. The sector fully opens for 100% FDI, Some of the changes in the sector include; consolidation of licensing in the sector. However, the Indian pharmaceuticals have faced some problems regarding the intellectual property and research and development India wants to capture the global market for high-quality affordable health care by 2047.<\/span><\/p>\r\n

Indian pharma sector 3rd largest globally, valued at $50 billion in FY 2023-24<\/span><\/h3>\r\n

Global Position and Market Value:<\/strong> India\u2019s NPCS ranked third in the global pharmaceutical industry with overall production of $50 billion for FY 2023-24. The domestic consumption value is $23,5 billion with export figures totaling at $26,5 billion solidifying India\u2019s position as a world\u2019s biggest supplier of generic pharmaceuticals.<\/span><\/p>\r\n

Diverse Product Range: <\/strong>The industry has a wide basket of products ranging from generic formulations, API, OTC products, Human vaccines and Independent.self generated products further including biosimilars & Biologics etc. This wide range serves the domestic market as well as the global market hence enhancing the supply of healthcare products across the globe.<\/span><\/p>\r\n

Economic Contribution: <\/strong>During FY 2022-23, the value of output of the pharmaceutical sector was \u20b9 4,56,246 crores and the value of the Gross Value Added (GVA) was \u20b9 1,75,583 crores. The industry also hold\u2019s large employment generation capabilities, as 9,25,811 people were employed in pharmaceutical, medicinal and botanical product industries in the financial year 2009-10.<\/span><\/p>\r\n

Educational and Research Initiatives:<\/strong> Department of Pharmaceuticals has set up seven National Institutes of Pharmaceutical Education and Research (NIPERs) as institution of national importance. These institutes provide postgraduate and doctoral education along with providing research facilities in a number of related fields of pharmacy.<\/span><\/p>\r\n

Research, Development, and Innovation Focus:<\/strong> To encourage development and innovation within the sectors of pharmaceutical & Medical Devices, a National Policy was put in place. The rationale of this policy is to develop such environment to foster innovation in the context of drug discovery and medical device industry development in India. The agenda is to encourage more entrepreneurship and eventually enhance the status of India in the global market of the sector.<\/span><\/p>\r\n

India ranked the third-largest producer of API\u2019s in terms of volume production and ranked 14th in terms of value.<\/span><\/strong><\/p>\r\n

It is famous as \u2018the pharmacy of the world\u2019, and India has the biggest contribution towards the global public health and overall access to healthcare.<\/span><\/p>\r\n

It supplied 20% of generic medicines globally \u2013 the highest supplied volume of generic medicines in the world.<\/span><\/p>\r\n

India produces 62 per cent of the total vaccines produced globally and 70 per cent of WHO\u2019s vaccines for expand- ed programme on immunisation.<\/span><\/p>\r\n

Industry Scenario and Foreign Investment<\/span><\/h3>\r\n

The pharma sector has been fully opened with 100% FDI through both the automated route as well as the government approval route for greenfield as well as brownfield investment.<\/span><\/p>\r\n

Pharmaceuticals under brownfield investment permit 74% through automatic route and the balance 26% through government approval route.<\/span><\/p>\r\n

Market Size and Growth<\/span><\/h3>\r\n

Currently, the size of the Indian pharma industry stands at $50 billion for the financial year FY 2022-23 and out of this 50% is meant for exports.<\/span><\/p>\r\n

Market is predicted to reach $65 billion by 2024 and $130 billion by 2030.<\/span><\/p>\r\n

Pharmaceutical Exports<\/span><\/h3>\r\n

Supplying over 200 countries, India has met more than half of Africa\u2019s demand for generics, 40 % of the US and a quarter of the UK respectively.<\/span><\/p>\r\n

India\u2019s exports of pharmaceutical goods rose 103% from $11.6 billion in 2014 to $23.6 billion in 2022.<\/span><\/p>\r\n

Centralization of Licensing Authority<\/span><\/h3>\r\n

The drug controller general of India has made the NOC issuance related to exports of unapproved, banned, new drugs the responsibility of the central level.<\/span><\/p>\r\n

This is expected to rationalise processes, increase productivity and ensure India can seize the next $251 billion of drug sales from expiring patents.<\/span><\/p>\r\n

Challenges Faced<\/span><\/h3>\r\n
    \r\n
  • Some of the challenges affecting India are on matters of Intellectual Property Rights, and inadequate funding on research and development within the Pharmaceutical Industry.<\/span><\/li>\r\n
  • Awareness of political, economic, socio cultural, technological and legal environment aspect is crucial in order to survive such challenges.<\/span><\/li>\r\n<\/ul>\r\n

    Government intiatives<\/span><\/h3>\r\n

    Quality Control and Crackdown on Poor Manufacturing:<\/span><\/strong><\/p>\r\n

    The Indian government has acted against 18 manufacturing drug companies for poor quality production and sacked more than ten licenses to drug industries for better manufacturing standards.<\/span><\/p>\r\n

    Vision Pharma 2047<\/span><\/h3>\r\n

    India has set an aspiration that the country will be manufacturing affordable, innovative, quality drugs and medical devices to be a part of the world \u2013 \u201cVasudhaiva Kutumbakam\u201d by 2047.<\/span><\/p>\r\n

    National Pharmaceutical Policy (2023)<\/span><\/h3>\r\n

    The Centre is preparing a new policy following the problems experienced by the Indian pharmaceutical industries. It focuses on five key pillars:<\/span><\/p>\r\n

    An instruction that enhances global pharmaceutical leadership.<\/span><\/p>\r\n

    Promoting self-reliance.<\/span><\/p>\r\n

    Improving health equity and access.<\/span><\/p>\r\n

    Improving effectiveness of regulations.<\/span><\/p>\r\n

    Attracting investments.<\/span><\/p>\r\n

    Conclusion<\/span><\/h3>\r\n

    The pharmaceutical sector of India is a world leader, and has already become one of the most important players on the international market. Through gradual diversification in exports, research and manufacturing, backed by large scale investment in education and streamlining its regulations, India is fast emerging as a leader in the global pharma business. The policies of the government in increasing the efficiency in the industry this include the National Pharmaceutical Policy, increasing the quality standards, and management of innovations are vital for the industry. Towards a vision of 2047, India will continue to make a more systemic and globally accessible quality health leadership aspirational.<\/span><\/p>\r\n<\/div>\r\n","protected":false},"excerpt":{"rendered":"

    India\u2019s pharmaceutical sector is a global leader, contributing 20% of generic medicines and 62% of global vaccine production, enhancing access to healthcare worldwide.<\/p>\n","protected":false},"author":6,"featured_media":27368,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[83,84,415,423,416,421,418,414,85,420,422,424,419,417],"class_list":["post-27367","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-current-affairs","tag-daily-current-affairs","tag-global-pharmaceutical-leader","tag-india-export-pharmaceuticals","tag-india-generic-medicines","tag-india-health-equity","tag-indian-pharma-exports","tag-indian-pharmaceutical-sector","tag-latest-current-affairs","tag-national-pharmaceutical-policy-2023","tag-pharma-industry-innovations","tag-pharmaceutical-education-in-india","tag-pharmaceutical-industry-growth","tag-vaccines-production-india"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/27367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/comments?post=27367"}],"version-history":[{"count":2,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/27367\/revisions"}],"predecessor-version":[{"id":28633,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/27367\/revisions\/28633"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/media\/27368"}],"wp:attachment":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/media?parent=27367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/categories?post=27367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/tags?post=27367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}