India's Pharma Sector Ranks 3rd Globally, Leads in Affordable Medicine Supply
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Summary: India's pharmaceutical industry ranks third globally by volume, supplying 20% of the world's medicines and leading in affordable generics and vaccines.
India's pharmaceutical industry, which ranks third in terms of production volume and fourteenth in terms of total value, has emerged as a global leader. Its 20% contribution to the world's medicine supply emphasizes how vital it is to global healthcare.
In fiscal year 2023-24, the Indian pharmaceutical industry's turnover reached ₹4.17 lakh crore, with an annual growth rate above 10% over the past five years. This consistent growth reflects the sector's solid performance and rising position in the global market.
India has become a key supplier of vaccines, fulfilling 55-60% of UNICEF's vaccine demands and a significant portion of the World Health Organization's needs for DPT (99%), BCG (52%), and measles (45%). These efforts have played a vital role in global vaccination initiatives, especially in low- and middle-income countries.
Government initiatives were key to this success. The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) runs around 15,000 Jan Aushadhi Kendras across the country, delivering generic medications for up to 80% less than their branded counterparts. With a total value of ₹15,000 crore, the Production Linked Incentive (PLI) Scheme for Pharmaceuticals encourages the domestic manufacture of expensive drugs including those for diabetes and cancer.
Foreign investment has been strong, with ₹12,822 crore in 2023-24 alone. The government allows 100 percent foreign investment in medical equipment and greenfield pharmaceutical projects, making India an appealing option for global companies.
The Indian pharmaceutical industry's emphasis on affordability, innovation, and inclusivity continues to improve healthcare access both locally and abroad, solidifying its position as the "pharmacy of the world.
