Amidst a year of challenging global trade dynamics, India’s pharmaceutical industry has bloomed as a silver lining, registering a robust year-on-year growth of 9.67% to reach USD 27.9 billion in the fiscal year 2023-24. This success story of growth comes even as the total exports from the country witnessed a decline of 3% in the last fiscal year. Official data from the commerce ministry highlights the resilience of the pharmaceutical sector, with exports in March alone escalating by 12.73% to reach USD 2.8 billion, compared to the previous year’s figure of USD 25.4 billion.
The pharmaceutical sector’s export performance is noteworthy for its consistency and strong market penetration across diverse geographies. The top five export destinations for India’s pharmaceutical products during the last fiscal year were the United States, the United Kingdom, the Netherlands, South Africa, and Brazil. The United States remarkably continues to be the largest market for Indian pharmaceuticals, accounting for over 31% of the total exports. Meanwhile, both the United Kingdom and the Netherlands comprise about 3% each.
In an ambitious expansion of its global footprint, India’s pharma exports during 2023-24 also marked their presence in new territories such as Montenegro, South Sudan, Chad, Comoros, Brunei, Latvia, Ireland, Chad, Sweden, Haiti, and Ethiopia. This strategic outreach into newer markets underlines the sector’s intent to diversify its customer base and reduce dependency on traditional markets.
Industry insiders attribute much of the growth impetus to burgeoning opportunities and sustained demand, particularly from markets like the United States, which have consistently fueled the export numbers month on month. Given the upward trajectory and favorable market conditions, industry experts project that India’s pharmaceutical business may surpass the USD 130 billion mark by 2030. They base their optimism on the continued expansion into new markets coupled with the escalating demand overseas. The pharmaceutical business has shown monumental growth from over USD 50 billion recorded for the fiscal year 2022-23.
India’s prowess in the pharmaceutical sector is not just confined to exports; the industry is recognized globally for its scale, ranking third largest in terms of volume and 13th in terms of value. The country is a hallmark for generic drug production, with over 60,000 formulations across 60 therapeutic categories. This magnitude of production is reflected in the monthly average of pharma products exported, which stands at USD 2-3 billion.
Supporting this growth narrative is the Government of India’s proactive stance, highlighted by the implementation of two production-linked incentive (PLI) schemes designed to bolster domestic manufacturing of key pharmaceutical ingredients and generic medicines. These schemes have catalyzed the sector’s momentum by incentivizing investments into the industry’s capacity expansion.
The Indian pharmaceutical industry’s journey represents a unique blend of strategic market penetration and robust domestic policies that amplify manufacturing capabilities. Its resilience in the face of global economic pressures demonstrates the sector’s adaptability and commitment to maintaining a strong position on the world stage. As exports continue to surge, the industry is shaping up as a vital player in global healthcare, ensuring access to affordable medicines while simultaneously propelling India’s economic growth and self-reliance in a critical sector.
