The Indian pharma industry is ready to shine globally with its export mark reaching the value of Rs. 1.83 lakh crore

Key Takeaways:

• In 2021-22, the pharma exports touched a mark of Rs. 1.83 lakh crore
• India stands third when it comes to the production of medicine and 14th in terms of value
• One of the primary reasons for the growth of the Indian pharma sector is the low cost of production and R&D.

The pharma industry is the backbone of the Indian industry. Among the several contributing business niches, the pharma sector has outshined in terms of making profits and deliverables. It has made the name of the country shine on a global pedestal. Whether it was the pandemic, developing vaccines for novel Coronavirus, or exporting generic medicines to the nations, the pharma sector has held a strong position in all these forums. The latest addition to its growth comes from the pharma industry’s exports this year.

In 2021- 22 the pharma exports touched a mark of Rs 1,83,422 crore against Rs 90,415 crore in 2013-14. This meteoric growth in the pharma sector has become a positive sign for the economy. At the same time, it has come as a motivation for other industries as well. The growth of the pharma industry highlights the potential it has. Many believe that the Indian pharma industry can outshine many other global names and establish itself as a leading sector globally.

What has sparked this growth?
An important question that often pops up is what makes India a leading manufacturer and exporter of medicine. The following are the contributing factors that have catalyzed the pharma industry’s growth.

Cost efficiency– Every industry looks for cost-efficient production and supply chain methods. This impacts not only the organization’s revenue but also the product’s pricing. The low cost of production and research and development that has been taking place in the pharma sector are the key contributors to making this segment more efficient and one of the leading competitions globally.

The economic growth-Another reason that has added to the growth of the pharma sector is the greater inclination towards the importance of health care. The pharma industry comprises different products, including drugs and generic medicine, health insurance, and medical products. After the pandemic, people became more aware of the benefits of medicines, healthcare products, and insurance. This has overall pumped money into the healthcare segment.

Government support policies- For the industry to grow, it is important to have the right support system and policies to boost its growth. The ease of doing business and supportive policies contribute to the pharma sector’s growth. The finance sector has received greater impetus from the government. With the PLI scheme, it has become easier for the pharma industry to get into the production and exports of medicine.

FDI investments- the influx of the FDI has also played a significant role in boosting the finance sector in India. From April to December 2021, FDI reached US$ 1.206 billion.

“In the times to come, we can expect much more meteoric growth and exponential rise in the exports of the medicines. This will also support the local businesses and pharma companies operating at a local level. Hence, we see a promising and prosperous future for the pharma sector,” mentions Mr. Kapil Jindal, director of JMS.

How does the future look?
The present trends indicate that the pharma industry is going to grow. The greater inclination and reliance on Indian medicines from the global economies and supporting policies by the government, along with the reduced cost of production, are the key factors that are helping the pharma industry grow.