Imagine the year 1969. In our domestic pharmaceutical market, Indian companies had a share of a mere 5%. Cut to last year where they had captured 85% of the market. Between this long stretch of time, a lot was achieved by India’s pharmaceutical companies.
There are over 60,000 pharmaceutical brands catering to over 60 categories. Currently, Indian pharmaceutical companies are growing their prominence in the entire world. We are the largest provider of generic medicines with a global market share of 20%. Indian companies export their products to over 200 countries including those countries where the markets are highly regulated, like the USA, Europe, Australia and more.
The Rise of Indian Pharmacy
Indian pharmaceutical companies saw an opening when the Indian Patent Act of 1970 was enacted. This gave an opportunity for Indian companies to make their own creations. The export of pharmaceutical products started after this. The Indian companies spend on average 2 - 10% on R&D of products. With R&D, Indian pharma companies could achieve cost-effectiveness. The cost of manufacturing pharma products is 33% lower in Indian than in the Western countries. The major Indian pharmaceutical companies are Sun Pharmaceuticals, Lupin Limited, Dr. Reddy’s Lab, Cipla, Aurobindo Pharma, Glenmark and more.
Indian companies have provided 62% of vaccines in the global market. Outside the USA, India has the most number of FDA approved pharmaceutical plants, around 3000 companies. There is 18.7% year on year export growth. Every minute, an estimated $40,000 worth of products are exported out of India’s capable pharmacies. The industry’s growth rate is 10-12%. By 2024, the industry will reach $65 billion and by 2030 it will reach $120 - 130 billion.
In 1990, the turnover was $1 billion by the Indian companies. In 2019, the companies so a turnover of $20.03 billion a rise of 9.8% from the previous year of $18.12 billion. Today the Indian medical device market alone stands at $10.36 billion and is expected to reach $50 billion by 2025. Between 2020-25, this market is expected to increase with a CAGR of 37%. The way Indian pharma companies have made a mark on a global level is truly inspirational.