India is one of the largest producers of pharmaceutical products and a leading player in the global generics market, exporting nearly 50% of its production. The turnover of Indian pharmaceutical industry was estimated at INR 2,04,627.1 crore in FY 2015-16.
The Indian pharmaceutical industry has witnessed a robust growth in recent years growing from INR 177,734 crore in FY 2014-15 to INR 204,627 crore in FY 2015-16, registering a growth of 29% as compared to the growth of 12% from INR 158,671 crore during FY 2013-14.
In FY 201 5-16, the exports of Drugs, Pharmaceuticals and Fine Chemicals was INR 1,06,212.4 crore. In the generics market, India exports 20% of global generics, making it the largest provider of generic medicines globally.
Policy Initiatives & Investments
Major Investments & FDI Inflows
FDI Inflows: The sector saw FDI equity inflows of USD 2.25 billion from April 2014 to March 2016.
Major foreign investments in the sector (March 2014-September 2016)
|Name of Foreign Collaborator||Country||Name of Indian Company||Amount of FDI Inflows (USDM)|
|Abbot Asia Holdings Ltd||United Kingdom||Abbott Healthcare Pvt Ltd||447.48|
|Mylan Group B.V, Netherlands||Netherlands||Mylan Laboratories Ltd||372.63|
|Hospira Pte Limited
|Singapore||Hospira Healthcare India Pvt Ltd
|Glaxo Smithkline Pte Ltd||Singapore||Glaxo Smithkline Pharmaceuticals Ltd||228.39|
|Jubilant Pharma Limited||Singapore||Jubilant Generics limited||174.07|
|Sanofi Pasteur Merieux||France||Shantha Biotecnics Limited||123.82|
|Fresenius Kabi (Singapore) Pte Ltd||Singapore & Germany||Fresenius Kabi Oncology Ltd||118.25|
|Bluewater Investment Ltd||Mauritius||Aptuit Laurus Private Ltd.||63.49|
|Meiji Seika Pharma Co Ltd||Japan||Medreich Ltd||55.48|
|Dashtag||United Kingdom||Fulford (India) Limited||29.89|
|Year||No. of units benefitted||Subsidy released under CLCSS|
|2015-16(as of Feb 2016)||55||489.00|
Cluster Development Programme for Pharma Sector (CDP-PS)
Launched on June 17, 2015, the scheme is being implemented on a Public Private Partnership format through a one time grant-in-aid, which will be released in phases for creation of Common Facility Centers (CFC).
Indian Drugs and Pharmaceuticals Limited (IDPL), a Central Public Sector Enterprise under Department of Pharmaceuticals, has modernized the tablet manufacturing section of its Gurgaon Plant, which was commissioned with an investment of INR 3 crore. This has enabled the PSU to mass manufacture new products in the field of diabetes, oncology, nephrology and cardiology at affordable prices.
Ease of Doing Business initiatives
Around 820 cases of overcharging involving INR 3992 crore is currently being processed.
To keep pace with the growing demand for highly-skilled R&D professionals the following skill development initiatives have been undertaken:
Transformation of National Institutes of Pharmaceutical Education & Research (NIPERS) as Innovation hubs