Pharma Industry in India

Nov 01, 2013 1 Comment by


India is now among the top five pharmaceutical emerging markets globally and is a front runner in a wide range of specialties involving complex drugs’ manufacture, development and technology. The Indian pharmaceutical industry is a highly knowledge based industry which is growing steadily and plays a major role in the Indian economy. As a highly organized sector, a number of pharmaceutical companies are increasing their operations in India. The industry is expected to touch US$ 35.9 billion by 2016.

The domestic pharma market has reported total sales of Rs 6,370 crore (US$ 1.03 billion) in the month of May 2013, registering a growth of 6.8 per cent, as per IMS Health. The cumulative drugs and pharmaceuticals sector has attracted foreign direct investments (FDI) worth US$ 11,304.91 million during April 2000 to April 2013, according to the latest data published by Department of Industrial Policy and Promotion (DIPP).

The Indian pharmaceutical industry would continue to experience strong growth as structural growth drivers continue to remain impervious. The industry is expected to report a growth of 10-12 percent in 2013-14. Among the top 10 companies, Cipla with total sales of Rs 302 crore (US$ 49.13 million), Sun Pharma Rs 297 crore (US$ 48.32 miliion), Alkem Rs 222 crore (US$ 36.12 million) and Sanofi Rs 186 crore (US$ 30.26 million) were the fastest growing corporations for the month of May 2013.

Indian pharma industry has to focus more on R&D, so as to enable India to maintain its status in the world pharma market and move ahead to become a global leader.



India is the biggest foreign supplier of medicines to the US and is home to almost 200 FDA-approved drug manufacturing facilities, including many run by multinational players. Pharmaceutical exports from the country during 2012-13 stood at US$14.6 billion, up from US$13.2 billion the previous year, as per P V Appaji, Director General, Pharmexcil. Pharmaceutical exports from India to the US rose nearly 32 per cent last year, to $4.2 billion. India accounts for nearly 40 per cent of generic drugs and over-the-counter products and 10 per cent of finished dosages used in the US, largest importer.

Leading Indian companies are now seeking more Abbreviated New Drug Approvals (ANDAs) in USA in specialized segments like anti infectives, cardiovasculars and central nervous system groups.

India exports generic and bulk drugs to US, Canada, Australia, European countries, UK & South Africa.

Major Indian companies engaged in export to these countries are-

  • Galxo Smith Kline
  • Dr Reddys Laboratories limited
  • Ranbaxy
  • Cipla
  • Lupin
  • Sun Pharma



Indian pharma firms nearly doubled imports of drug ingredients last year. Companies said this was to make up for shortages in local production, while analysts said it may have been aimed at cutting costs ahead of proposed curbs on drug prices, especially as a chunk of the imports came from China.

India imported active pharma ingredients (APIs) and drug intermediates worth $4.6 billion (about Rs.25,000 crore) in 2012, up from $2.9 billion in the previous year.

Penicillin and its derivatives are the base products for a broad basket of anti-infective drugs, local manufacturers have no option but to import them to reduce material cost. On average, prices of drug ingredients and intermediaries manufactured in China are 50-60% lower than the cost of APIs made in India, according to to an industry consultant.

Major drug India imports – Pencilin, Hydrogen Peroxide, Cedranfix (aromatic chemicals), Cancer Medicine

Countries- China, UK, US, France, Germany.


  • Gold Life International Limited
  • Paramedic Pharma
  • Surya Medicare Ltd
  • Jain Medicines

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