INDIA’S STANDING IN PHARMA

INDUSTRY

MBA (IB) 19-21

INDIA & WTO

Submitted To Submitted By

AMAN AGARWAL (6A)

Mr. B.K Sahu RUPAM BORA (42A)
SHUBHAM PATLE (49A)
SNEHAL KHETAN (51A)

SONAKSHI AGARWAL (52A)

TILAK SONDAGAR (56A)
Table of Contents
CURRENT SCENARIO IN PHARMACEUTICAL INDUSTRY...................................................................1
SOURCES..........................................................................................................................................4

India’s Standing In Pharmaceutical Industry

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CURRENT SCENARIO IN PHARMACEUTICAL INDUSTRY

India’s pharmaceutical industry is the biggest provider of generic drugs globally. It supplies
more than 50% of global demand for different vaccines, 40% of generic demand in the US, and
25% of all medicine in the UK. It is the third-largest in the world in terms of volume and
fourteenth largest in terms of value.
It enjoys an important position in the global pharmaceuticals sector. The country also has a big
pool of scientists and engineers that have the potential to steer the industry ahead to greater
heights. Currently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired
Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.

The current major players in the pharmaceutical industry are –

Net Profit in India as of 2020 in billion Indian Rupees

20 18.88
18
16.22 16.02
16 15.39 15.3
14 12.77
12
10
8.17 7.99
8 7.45
6
4
2
0
Cipla Glenmark Cadila Lupin Aurobindo Divis Labs Sun AlkemLab Torrent
Health Pharma Pharma Pharma

Net Profit

Indian pharmaceutical sector is expected to grow to US$ 100 billion, while the medical device
market is expected to grow US$ 25 billion by 2025. US$ 20.70 billion of pharmaceutical export
was done from India in FY20. The exports include bulk drugs, intermediates, drug formulations,
biologicals, Ayush and herbal products, and surgical.

India's biotechnology industry which consists of bio-agriculture, bio-services, bio-industry,

biopharmaceuticals, and bioinformatics is expected to grow at an average growth rate of about
30% a year on year to reach US$ 100 billion by 2025.

India’s domestic pharmaceutical market turnover reached Rs 1.4 lakh crore (US$ 20.03 billion)
in 2019, up 9.8% year on year from Rs 129,015 crore (US$ 18.12 billion) in 2018.

India’s Standing In Pharmaceutical Industry

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 Annual Turnover of Indian Pharmaceutical Market
(US $ billion)
25
20.03
20 17.87 18.12
16.41
15

10

0
2016 2017 2018 2019

Turnover

Medicine spending in India is projected to grow 9-12% over the next five years, leading India to
become one of the top 10 countries in terms of medical spending.

Covid-19 has exposed India’s overdependence on China for Active Pharmaceutical Ingredients
(API). Over 60% of India’s pharmaceutical imports are API and intermediates, with almost 70%
coming from China. Some of the most important APIs, such as paracetamol, are Chinese
imports.  
China has Increased the price of Key starting material (KSMs) by 20%. These materials are the
building blocks for any drug. This will severely affect the indigenous API production in India.
Relaxation of licensing policies and implementation of the 2005 product patent law saw pharma
companies importing APIs rather than producing domestically. Long manufacturing cycles and
strict quality standards that resulted in low margins dealt a further body blow. Now India is
looking at developing its supply chain network and not be dependent on China.

The imposition of the export ban on 26 drugs by the government led to a substantial 22.8%
fall in pharma outbound shipments in March 2020. The list includes paracetamol, Vitamins B1,
B6, B12, female hormone drug Progesterone, antibiotics used to treat vaginal infections like
Tinidazole and Metronidazole, a drug used to treat herpes Acyclovir, and other antibiotics like
Chloramphenicol, Erythromycin Salts Neomycin, Ornidazole, and Clindamycin. Which account
for 10% of Indian pharmaceuticals exports but after a month it lifted the ban from 24 of these
drugs. Paracetamol, a pain reliever, and its formulations were not in the list of drugs freed up
for export.
Credit rating agency ICRA has revised its outlook for the Indian pharmaceutical industry to
‘stable’ from ‘negative’ at the start of the year. Companies like Ipca, Dr. Reddy’s have shown
increased sales and profitability.

India’s Standing In Pharmaceutical Industry

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Council of Scientific and Industrial Research (CSIR) with Laxai Life Sciences Pvt. Ltd., Bharat
Biotech, and Zydus Cadila are all in the different phases of clinical trials for the COVID-19
vaccine.
The Electronic Vaccine Intelligent Network (eVIN) present in 32 states and union territories will
provide real-time information on vaccine stocks and flow in the country.
SOURCES

1. https://www.statista.com/statistics/1038337/india-leading-pharma-companies-by-net-
profit/
2. https://www.ibef.org/industry/pharmaceutical-india.aspx
3. https://www.relocatemagazine.com/articles/enterprise-coronavirus-exposes-indian-
pharmas-overdependence-on-china-au20
4. https://www.newindianexpress.com/business/2020/aug/29/indian-pharma-sector-
sales-to-rise-after-cost-cuts-support-margins-in-pandemic-hit-q1-2020-2189947.html
5. https://www.thehindubusinessline.com/economy/policy/govt-puts-export-curbs-on-26-
pharma-ingredients-medicines/article30971571.ece
6. https://www.indiatoday.in/india/story/coronavirus-india-lifts-restrictions-on-24-drug-
exports-as-global-crisis-deepens-1664132-2020-04-07
7. https://www.forbesindia.com/article/healthcare-special/indias-pharma-firms-see-
strong-growth/62255/1
8. https://www.timesnownews.com/business-economy/companies/article/china-
increases-prices-of-key-drug-ingredients-by-up-to-20-likely-to-put-pressure-on-indian-
pharma-companies/656068

India’s Standing In Pharmaceutical Industry

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