India is an outstanding and fast-growing presence in the world of pharmaceuticals. It is a major supplier of generic medicines around the world, contributes 20% of the world’s volume supply, and provides 62% of the global demand for vaccines. India ranks 3rd in the world for volume production and 10th by quality, thus accounting for about 10% of global production per volume and 1.5 percent in value.
ADVANTAGES OF INDIAN PHARMA SECTOR
- Low cost of production, labor, and low cost in research & developing help to increase the export as the price is low.
- India plans to set up a nearly Rs 1 lakh crore (US$ 1.3 billion) fund to provide a boost to companies to manufacture pharmaceutical ingredients domestically by 2023.
- In November 2019, the Cabinet approved extension/renewal of extant Pharmaceuticals Purchase Policy (PPP) with the same terms and conditions while adding one additional product namely, Alcoholic Hand Disinfectant (AHD) to the existing list of 103 medicines till the final closure/strategic disinvestment of Pharma CPSUs.
- Under Budget 2020-21, Rs 65,012 crore (US$ 9.30 billion) has been allocated to the Ministry of Health and Family Welfare is. The Government has allocated Rs 34,115 crore (US$ 4.88 billion) towards the National Health Mission under which rural and urban people will get benefited.
- The Government of India is planning to set up an electronic platform to regulate online pharmacies under a new policy to stop any misuse due to easy availability.
- The Government of India unveiled ‘Pharma Vision 2020’ to make India a global leader in end-to-end drug manufacture. Approval time for new facilities has been reduced to boost investment.
India is the source of 60,000 types of generic products in all 60 medical categories and makes more than 500 types of Active Pharmaceutical Ingredients. The Department of Medicine aims to make the country a permanent drug endpoint under ‘Pharma Vision 2020’.
India has more than 3,000+ pharma companies with a strong network of more than 10,500 construction sites. Domestic pharma market sales reached $20,03 bn in 2019, 9.3% more from 2018, it grows as health insurance and pharmacies increase
-From 2018 to 19, drug sales in India cost $ 19.14 bn and growth of 10.72% per annum
-India owns 12% of all global production sites that adhere to the US market
-Production costs in India are about 33% lower than in the United States
-100% FDI approved.