1/28/2021 Back to Growth: Pharmaceutical sector overview and interview with Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance https://www.investindia.gov.in/team-india-blogs/back-growth-pharmaceutical-sector-overview-and-interview-sudarshan-jain-secretary 1/8 Back to Growth: Pharmaceutical sector overview and interview with Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance Sector overview Demand drivers JANUARY 25, 2021 By: Aarushi Bajaj & Kanika Verma 3 rd largest third pharmaceuticals market globally by volume with major segments including generic drugs, Active Pharmaceutical Ingredient (API)/bulk drugs, Over-the-counter (OTC) drugs, vaccines, contract research and manufacturing, and biosimilars and biologics. #1 largest provider of generic medicines; accounts for 20% of global generic drug exports by volume. 500+ APIs, 60,000 generic brands across 60 therapeutic categories. Largest supplier of low-cost generics, vaccines, and affordable HIV medicines. Leading pharmaceutical exporter, exporting to 200+ countries with exports reaching $20.58 bn during 2019-20. Highest number US FDA approved plants outside the US. The cost of pharmaceuticals manufacturing is ~35% of that in US. Indian pharmaceuticals market is expected to reach $130 bn by 2030. Rising affordability expected to drive 73 million households to the middle class over the next 10 years.
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1/28/2021 Back to Growth: Pharmaceutical sector overview and interview with Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance
Pharmaceutical industry plays a key role in not only driving better health
outcomes but also driving the economic engine of India. The industry
contributes $ 41 Billion annually which accounts for approximately 1.72 per
cent of India's GDP, as reported by the Department of Pharmaceuticals. The
industry has also contributed signi�cantly to the economy by providing
employment to approximately 2.7 Million people and generating $ 13 Billion
in trade surplus (FY 20). India enjoys a key position in the global
pharmaceutical industry. The country is the world’s largest supplier of
generics, accounting for 20 per cent of global exports. India supplies over 60
per cent of global demand for various vaccines and 40 per cent of the demand
for generic products in the US. The pharmaceutical companies will continue to
grow both organically and inorganically through alliances and partnerships.
They will continue to focus on improving operational ef�ciency and
productivity.
What potential do you see in the sector for job creation in the comingperiod?
The pharmaceutical sector has always been driven by knowledge, technology
and skills and has a great potential to create new job opportunities. A recent
survey showcased life sciences as the most preferred sector that is predicted to
attract talent, ahead of IT and FMCG, this year. The growing collaboration
between Indian and global pharmaceutical companies will help leverage
innovation and scale, resulting in better use of human resources and reduced
risk of layoffs.
Your take on how sector-specific reforms (IBC, PLI, Bilateral Netting etc.) bythe government helped the sector thrive and be resilient during the Covid19period?
1/28/2021 Back to Growth: Pharmaceutical sector overview and interview with Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance