Pharmaceutical Export Market in India 2024-2029

The Indian pharmaceutical industry has witnessed rapid growth and is expected to develop further, owing to huge export possibilities. The Indian pharmaceutical business supplies 50% of global demand for a variety of vaccines, 40% of generic medicines demand in the US, and 25% of all medication in the UK.

Generic drugs, over-the-counter medication, bulk drugs, vaccines, contract research and manufacturing, biosimilars, and biologics are some of the major segments of the Indian pharma industry. The Indian pharmaceutical market is rapidly expanding, fueled by increasing demand for healthcare products and services.

In 2023, the demand for anti-infectives and vitamins saw significant growth, highlighting a focus on health needs. At the same time, chronic therapies for cardiac and respiratory conditions remained strong, demonstrating consistent demand for long-term treatments. Indian pharmaceutical companies have been increasingly successful in obtaining US Food and Drug Administration (USFDA) approvals for their products. This has paved the way for increased exports to the US market.

Government initiatives:

In India, there are several quality certification standards such as International Organization for Standardization (ISO), Good Manufacturing Practice (GMP), for maintaining quality standards of products. The existing ISO standard certification program was extended to vaccines, insulin derivatives, medicaments and AYUSH (ayurveda, yoga, unani, siddha, and homeopathy) products in September 2021. In India, the regulatory framework overseeing ASU goods is divided into two parts: product regulation and regulation of institutions that either train persons in charge of training doctors in AYUSH or relate to AYUSH healthcare delivery.

Market drivers:

India's pharmaceutical industry thrives on its ability to produce low-cost generics, driven by competitive land rates, affordable labor, and low resource costs (such as for water and electricity). With cost-effective production machinery and seamless integration of intermediates, APIs, and formulations, Indian companies maintain high standards while adhering to global safety regulations, driving India as a key player in the global pharmaceutical export market.

Key deterrents to the growth of the market:

An increase in the cost of skilled manpower who work as scientists, regulatory compliance personnel, pharmaceutical lawyers, and international business development personnel has increased expenses for innovation. Hence, the capacity to evaluate contracts/alliances is available only in top companies. This restricts new companies' abilities to contribute to exports. The pharma industry in India also faces the challenge of growing data explosion from digital devices and electronic patient records requires upgrades to the existing digital infrastructure.