In 1907, Bengal Chemicals and Pharmaceuticals were established at Calcutta. After independence in 1947, Indian Pharmaceutical market was dominated by multinationals. The Indian Pharmaceutical sector developed only after 1955 when the large public sector units like Indian Drug and Pharmaceuticals Ltd. (IDPL) and Hindustan Antibiotic limited (HAL) were established. The government also encouraged private sector units i.e ranbaxy, Dr reddy¶s ,cilpa etc« 

Alembic chemicals (in 1907) and Bengal immunity (in 1919) were established.


The earliest drugstores date back to the Middle Ages. The first known drugstore was opened by Arabian pharmacists in Baghdad in 754. Most of today's major pharmaceutical companies were founded in the late 19th and early 20th centuries. Key discoveries of the 1920s and 1930s insulin


The Indian pharmaceutical industry consists of manufacturers of bulk drugs and formulations. Bulk drugs include the active pharmaceutical ingredients (APIs) which are used for the manufacture of formulations. There are also 5 Central Public Sector Units that manufacture drugs. These companies are: Indian Drugs & Pharmaceuticals Hindustan Antibiotics Ltd. Bengal Chemical and Pharmaceuticals Ltd. Bengal Immunity Ltd. Smith Stanistreet Pharmaceuticals Ltd. 


Bulk drugs  

The active chemical substances in powder form, the main ingredient in pharmaceuticals ± chemicals having therapeutic value, used for the production of pharmaceutical formulations. Major bulk drugs include antibiotics, sulpha drugs, vitamins, steroids, and analgesics. Bulk drug industry is the backbone of the Indian pharmaceutical industry Growth of Indian bulk drug industry in the last five decades has been impressive and highest among developing countries

Formulations are broadly categorized into patented drugs and generic drugs. A patented drug is an innovative formulation that is patented for a period of time (usually 20 years) from the date of its approval. A generic drug is a copy of an expired patented drug that is similar in dosage, safety, strength, method of consumption, performance and intended use.


Ayurveda: Ayurveda translates as the ³science of life´. It encompasses fundamentals and philosophies about the world and life, diseases and medicines. Homoeopathy: Is a branch of therapeutics that treats the patient,which simply means ³Let likes be cured by likes´.

INDIAN PHARMACEUTICAL INDUSTRY IPI is ranked 3rd in volume terms and 14th in value terms globally.  Around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and vaccines is met by IPI. 


National Pharmaceutical Pricing Authority (NPPA)NPPA is an organization of the Government of India which was established, to fix/ revise the prices of controlled bulk drugs and formulations and to enforce prices and availability of the medicines in the country, under the Drugs (Prices Control) Order, 1995. Central Drugs Standard and Control Organization (CDSCO) CDSCO lays down standards and regulatory measures of drugs, cosmetics, diagnostics and devices in the country. It regulates clinical trials and market authorization of new drugs.


Worth of the pharmaceutical industry ± $ 6 billion Revenues generated - US$ 7.6 billion and have grown at an average rate of 10% over last five years

Predicted future growth


Medicines Medical equipments Surgical goods Operation accessories Injections

Market share

IndianTraditional MedicineMarket Size, Ayurveda-55% Homeopathy-33% Unani-9% Biochemic-3%


It ranks 3rd in the world, pertaining to the volume of sales The estimated worth of the Indian Pharmaceutical Industry is US$ 6 billion The growth rate of the industry is 13% per year The current revenues are estimated at US$5.5 billion and it is expected to grow at a compounded annual growth rate of 19% and touch US$25 billion by 2015.

Cost Effective Strong Manufacturing Base Availability of high quality skilled workforce. Excellent marketing and distribution network Diverse ecosystem

Less investment in research and development Lack of coordination between industry and academia. Negligible expenditure on healthcare in the country. Manufacture of fake and low quality medicines bring

SWOT Analysis
Increased export potential Marketing ties ups with multinational companies to sell their products in domestic market. Immense scope to position India as a centre for international clinical trials. Key player in global pharmaceutical R&D. Export of generic drugs to developed markets

Product patent regime is a major threat to domestic industry unless the industry takes up R&D initiative aggressively. Drug Price Control Order puts undue pressure on product prices, affecting the profitability of the pharmaceutical companies. The new MRP based excise duty regime threatens the business of smaller pharmaceutical companies

Key players

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