India’s Global Pharmaceutical Footprint

Syllabus: GS3/ Economy

Context

• The Department of Pharmaceuticals, with a vision to make India the world’s largest provider of quality medicines at reasonable prices, transformed the country’s global pharmaceutical footprint.

Pharmaceutical Sector of India

• India’s pharmaceutical market for FY 2023-24 is valued at USD 50 billion with domestic consumption valued at USD 23.5 billion and export valued at USD 26.5 billion.
• Major segments of industry include generic drugs, OTC medicines, bulk drugs, vaccines, contract research & manufacturing, biosimilars and biologics. 
• The Pharma sector currently contributes to around 1.72% of the country’s GDP.
• India is the 3rd largest producer of API accounting for an 8% share of the Global API Industry. 

Achievements of Pharmaceutical Sector of India

• India has been UNICEF’s largest vaccine supplier for the past six to seven years, contributing 55% to 60% of total volume procured.
• India is also  contributing 99%, 52% and 45% of the WHO demand for DPT, BCG and the measles vaccines, respectively.
• The cumulative FDI equity inflow in the Drugs and Pharmaceuticals industry is US$ 22.52 billion during the period 2000-2024.
• The nation is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and is the leading vaccine manufacturer globally.
  • India is known as the “pharmacy of the world” due to the low cost and high quality of its medicines.

Medical Devices sector

• The medical devices sector is an essential and integral constituent of the Indian healthcare sector, particularly for prevention, diagnosis, treatment and management of all medical conditions and disabilities.
• Its constituent device categories are; Electro-medical equipment, implants, consumables and disposables, surgical instruments and in vitro diagnostic reagents.
• In the financial year of 2024-25, from April 2024 to December 2024, FDI inflows (in both pharmaceuticals and medical devices) was ₹11,888 Crore.

Government initiatives

• Production Linked Incentive Scheme, launched in 2020, is a transformative initiative aimed at boosting domestic manufacturing, attracting investments, reducing reliance on imports and increasing exports. It includes;
  • PLI Scheme for Pharmaceuticals,
  • PLI Scheme for promotion of domestic manufacturing of critical KSMs/DIs/APIs,
  • PLI Scheme for promoting domestic manufacturing of Medical Devices.
• Promotion of Bulk Drug Parks: Approved in March 2020, the scheme (FY 2020–21 to FY 2025–26) aims to establish parks with world-class common infrastructure to reduce manufacturing costs and enhance self-reliance in bulk drugs. 
• Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP): Quality generic medicines are made available at affordable prices to all through dedicated outlets.

Concluding remarks

• India’s pharmaceutical and medical devices sectors stand as a testament to the country’s growing capabilities in science, innovation, and manufacturing.
• It has stressed that the country’s pharmaceutical sector will touch the 130 billion US dollar mark by 2030.

Sources: PIB