Role of Pharmaceutical Industry in India GDP

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The Role of Pharmaceutical Industry in India GDP is immense. For the past few years the Indian Pharmaceutical Industry is performing very well.

The varied functions such as contract research and manufacturing, clinical research, research and development pertaining to vaccines are the strengths of the Pharma Industry in India. Multinational pharmaceutical corporations outsource these activities and help the growth of the sector. The Indian Pharmaceutical Industry has a bright future.

Role of Pharmaceutical Industry in India GDP-Facts


  • The Pharmaceutical Industry in India is one of the largest in the world
  • It ranks 4th 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
  • Almost most 70% of the domestic demand for bulk drugs is catered by the Indian Pharma Industry
  • The Pharma Industry in India produces around 20% to 24% of the global generic drugs
  • The Indian Pharmaceutical Industry is one of the biggest producers of the active pharmaceutical ingredients (API) in the international arena
  • The Indian Pharma sector leads the science-based industries in the country
  • The pharmaceutical sector has the capacity and technology pertaining to complex drug manufacturing
  • Around 40% of the total pharmaceutical produce is exported
  • 55% of the total exports constitute of formulations and the other 45% comprises of bulk drugs
  • The Indian Pharma Industry includes small scaled, medium scaled, large scaled players, which totals nearly 300 different companies
  • There are several other small units operating in the domestic sector

Pharmaceutical Industry in India-Growth


  • As per the present growth rate, the Indian Pharma Industry is expected to be a US$ 20 billion industry by the year 2015
  • The Indian Pharmaceutical sector is also expected to be among the top ten Pharma based markets in the world in the next ten years
  • The national Pharma market would experience the rise in the sales of the patent drugs
  • The sales of the Indian Pharma Industry would worth US$ 43 billion within the next decade
  • With the increase in the medical infrastructure, the health services would be transformed and it would help the growth of the Pharma industry further
  • With the large concentration of multi national pharmaceutical companies in India, it becomes easier to attract foreign direct investments
  • The Pharma industry in India is one of the major foreign direct investments encouraging sectors

Role of Pharmaceutical Industry in India GDP-CRAMS


  • The Indian Pharmaceutical Industry is one of fastest emerging international center for contract research and manufacturing services or CRAMS
  • The main factors for the growth of the CRAMS is due to the international standard quality and low cost
  • The estimated value of the CRAMS market in 2006 was US$ 895 million
  • Indian already has the biggest number of US Food and Drug Administration (USFDA)
  • standardized manufacturing units outside the territory of United States
  • Around 50 more new manufacturing units are to be set up in accordance to the USFDA and UK Medicines and Healthcare Regulatory Agency (MHRA) standards
  • With all these development India is posed to become the biggest producer of drugs in the world
  • Some of the major domestic players in this sector are Paras Pharma, Bal Pharma, Unijules Life Sciences, Flamingo Pharma, Venus Remedies, Surya Organics and Chemicals, Centaur Pharma, Kemwell, Coral Labs
  • The contract manufacturing market in India pertaining to the multinational companies is expected to worth US$ 900 million by the year 2010

Role of Pharmaceutical Industry in India GD-India Advantage


  • India has the advantage of the cost, as the cost of labor, the cost of inventory is much lower than other places
  • The multinational companies, investing in research and development in India may save upto 30% to 50% of the expenses incurred
  • The cost of hiring a research chemist in the US is five times higher than its Indian counterpart
  • The manufacturing cost of pharmaceutical products in India is nearly half of the cost incurred in US
  • The cost of performing clinical trials in India is one tenth of the cost incurred in US
  • The cost of performing research in India is one eighth of the cost incurred in US