Brief Context
Context The Department of Pharmaceuticals, with a vision to make India the world’s largest provider of quality medicines at reasonable prices, transformed the country’s global pharmaceutical footprint. Pharmaceutical Sector of India India’s pharmaceutical market for FY 2023-24 is valued at USD 50 billion with domestic consumption valued at USD 23.5 billion and export valued at USD 26.5 billion. Major segments of industry include generic drugs, OTC medicines, bulk drugs, vaccines, contract resear
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Syllabus: GS3/ Economy
Context
- The Department of Pharmaceuticals, with a vision to make India the world’s largest provider of quality medicines at reasonable prices, transformed the country’s global pharmaceutical footprint.
Pharmaceutical Sector of India
- India’s pharmaceutical market for FY 2023-24 is valued at USD 50 billion with domestic consumption valued at USD 23.5 billion and export valued at USD 26.5 billion.
- Major segments of industry include generic drugs, OTC medicines, bulk drugs, vaccines, contract research & manufacturing, biosimilars and biologics.
- The Pharma sector currently contributes to around 1.72% of the country’s GDP.
- India is the 3rd largest producer of API accounting for an 8% share of the Global API Industry.
Achievements of Pharmaceutical Sector of India
- India has been UNICEF’s largest vaccine supplier for the past six to seven years, contributing 55% to 60% of total volume procured.
- India is also contributing 99%, 52% and 45% of the WHO demand for DPT, BCG and the measles vaccines, respectively.
- The cumulative FDI equity inflow in the Drugs and Pharmaceuticals industry is US$ 22.52 billion during the period 2000-2024.
- The nation is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and is the leading vaccine manufacturer globally.
- India is known as the “pharmacy of the world” due to the low cost and high quality of its medicines.
Medical Devices sector
- The medical devices sector is an essential and integral constituent of the Indian healthcare sector, particularly for prevention, diagnosis, treatment and management of all medical conditions and disabilities.
- Its constituent device categories are; Electro-medical equipment, implants, consumables and disposables, surgical instruments and in vitro diagnostic reagents.
- In the financial year of 2024-25, from April 2024 to December 2024, FDI inflows (in both pharmaceuticals and medical devices) was ₹11,888 Crore.
Government initiatives
- Production Linked Incentive Scheme, launched in 2020, is a transformative initiative aimed at boosting domestic manufacturing, attracting investments, reducing reliance on imports and increasing exports. It includes;
- PLI Scheme for Pharmaceuticals,
- PLI Scheme for promotion of domestic manufacturing of critical KSMs/DIs/APIs,
- PLI Scheme for promoting domestic manufacturing of Medical Devices.
- Promotion of Bulk Drug Parks: Approved in March 2020, the scheme (FY 2020–21 to FY 2025–26) aims to establish parks with world-class common infrastructure to reduce manufacturing costs and enhance self-reliance in bulk drugs.
- Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP): Quality generic medicines are made available at affordable prices to all through dedicated outlets.
Concluding remarks
- India’s pharmaceutical and medical devices sectors stand as a testament to the country’s growing capabilities in science, innovation, and manufacturing.
- It has stressed that the country’s pharmaceutical sector will touch the 130 billion US dollar mark by 2030.
Sources: PIB