India pharma report 2024

                                                                                                                                                                                              In 2024, India's pharmaceutical market was valued at approximately $65 billion, with strong performance in exports and a focus on innovation. The sector is the world's third-largest by volume and a major global supplier of generic medicines, with exports growing at a robust rate. Key challenges included supply chain disruptions and rising costs, while growth drivers included robust domestic demand, expansion in biotechnology, and government support through initiatives like increased funding for bulk drug parks.  

 

Market size and performance

• Overall market: 

  Valued at an estimated $65 billion by 2024. 
• Exports: 

  Expected to reach over $25 billion, representing about 20% of global generic drug exports. 
• Growth: 

  Export growth was strong, at approximately 9% annually in 2024, nearly double the global average. 
• Biotechnology: 

  The sector showed rapid growth, with the Indian biotechnology market increasing 13-fold over the previous decade. 

Key segments and activities

Generics: 

India continues to be a leading global supplier, meeting 20% of global demand for drugs and supplying 40% of the US generic market. 

APIs (Active Pharmaceutical Ingredients): 

India is the third-largest market for APIs globally, holding an 8% share and supplying 57% of APIs on the WHO's prequalified list. 

Biologics: 

There is a growing emphasis on developing complex biologics, such as vaccines and biosimilars. 

Contract Manufacturing: 

This segment represented about 60% of the market in 2023, with a projected CAGR of 10.7%. 

 

Challenges and opportunities

• Challenges: 

  The industry faced challenges such as supply chain disruptions, rising raw material costs, and price fluctuations for APIs.
• Opportunities: 

  Companies are focusing on innovation and risk management, including diversifying supply chains and investing in automation and AI. 
• Government initiatives: 

  The government has provided support through increased allocations for pharmaceutical development, bulk drug parks, and the Jan Aushadhi scheme for affordable medicines.

Future outlook

• The market is projected to reach $130 billion by 2030 and $450 billion by 2047. 
• There is a growing focus on addressing the country's significant burden of chronic diseases like diabetes. 
• Innovation in novel therapies and a stronger innovation ecosystem are seen as crucial for future growth.