According to a new analysis, India’s pharmaceutical exports are expected to treble from $27 billion in 2023 to $65 billion by 2030, with a potential increase to $350 billion by 2047.
While India is the world’s largest provider of generic medications, accounting for one in every five generic drugs sold, it is now ranked eleventh in terms of export value.
According to a report by Bain & Company in collaboration with the Indian Pharmaceutical Alliance (IPA), Indian Drugs Manufacturers Association (IDMA), and Pharmexcil, by innovating and diversifying its export basket to include specialty generics, biosimilars, and innovative products, India can potentially secure a position among the top five nations in export value by 2047.
“India has long been known as the world’s pharmacy. We now want to transform the narrative to “India as the world’s healthcare custodian.” “The government is fully committed to achieving this goal by encouraging innovation, increasing R&D, and ensuring smooth regulatory processes,” said Piyush Goyal, Union Minister of Commerce and Industry.
We will continue to establish a globally competitive sector that promotes growth and contributes to healthcare around the world by enhancing partnership between academia, industry, and government,” the minister said.
According to Sriram Shrinivasan, Partner at Bain & Company, the transformation from volume-based to value-led growth is critical for Indian pharmaceuticals to ensure its due place in the global market.
“Innovation, including the transition to specialty generics, biosimilars, and innovative medicines, will be critical to India’s pharmaceutical future. “With the proper emphasis on quality, regulation, access to global markets, talent, and entrepreneurial innovation,” he stated.
India’s API export business is expected to increase from $5 billion today to $80-90 billion by 2047.
While Indian players now account for less than 5% of the global biosimilars industry, green shoots are visible, driven by increased R&D investments, an expanded pipeline of 40+ items, and anticipated capacity expansion over the next 3-4 years.
Indian biosimilar exports, currently valued at $0.8 billion, are expected to expand fivefold to $4.2 billion by 2030, accounting for 4% of the worldwide market, and reach $30-35 billion by 2047, according to the paper.
India’s pharmaceutical exports, which currently total $19 billion, are expected to increase to $180-190 billion by 2047.
“India can become a leader in pharmaceutical exports, but it requires strategic interventions,” stated Dr. Viranchi Shah, National President of IDMA.