India’s Pharma market to expand 2.4 times over next 5 years, share in global market to hit 5 pc: Report

India’s pharmaceutical industry is poised for significant growth, with its share in the global market expected to rise to 5 per cent by 2030, according to a report by Bain & Company.

The Indian pharma market, currently valued at around USD 55 billion, is projected to expand 2.2 to 2.4 times over the next six years, reaching USD 120 billion to USD 130 billion.

It said, “The Indian pharma market, currently valued at USD 55 billion, is expected to reach USD 120 billion to USD 130 billion by 2030 and to approach USD 450 billion by 2047.”

The global pharmaceutical industry is currently worth about USD 1.6 trillion, with India contributing around 3 per cent to 3.5 per cent. The anticipated growth will solidify India’s position as a key player in the global pharma landscape.

A unique aspect of India’s pharma industry is that its export market is as large as its domestic market. Indian pharma exports play a crucial role in the country’s economy, making up 6 per cent of total merchandise exports by value. In 2023, pharmaceutical exports reached USD 27 billion, up from USD 19 billion in 2018, growing at an annual rate of 8 per cent.

The report added that more than 70 per cent of these exports are formulations, while bulk drugs and drug intermediates account for around 20 per cent. Other export categories include vaccines, biosimilars, and innovative products such as New Chemical Entities (NCEs) and New Biological Entities (NBEs).

India has established itself as a global pharmaceutical hub, with over 10,000 manufacturing facilities, 3,000 pharmaceutical companies, and 650 US-FDA-compliant plants–the highest number outside the United States. It is the world’s largest supplier of generic medicines, providing one in every five generic drugs sold globally.

Indian pharmaceutical products reach nearly 200 countries, supplying around 50 per cent of Africa’s demand for generics and 40 per cent of the United States’ generic medicine needs. Due to its ability to produce high-quality, low-cost medicines, India has earned the title of the “pharmacy of the world.”

Despite its leadership in volume, India still lags in terms of pharmaceutical export value. The report said “Indian pharmaceutical exports rank 11 on the list globally in value terms, accounting for 3 per cent of total pharmaceutical exports”

With strong domestic demand, increasing global exports, and advancements in pharmaceutical innovation, India’s pharma industry is on track for remarkable expansion in the coming years.