The Economic Survey 2023 projects that India's domestic pharmaceutical market will reach $130 billion by 2030, sustained by the country's continued growth in the industry despite the COVID-19 pandemic.

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Finance Minister Nirmala Sitharaman tabled the survey during a joint session of the Parliament of India on Tuesday.

India ranks 3rd in global production of pharma products by volume and 14th by value, the survey reported. It is also the largest global provider of generic medicines contributing 20 percent of global supply and is the leading vaccine manufacturer with a 60 percent market share.

"The Indian pharmaceutical industry plays a prominent role in the global pharmaceutical industry," the survey said.

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The domestic pharmaceutical market was estimated at $41 billion in 2021 and expected to reach $65 billion by 2024. It is further expected to reach $130 billion by 2030.

India's pharmaceutical exports achieved a 24 percent growth in FY21, driven by COVID-19 demand for critical drugs and other supplies in 150 countries, and sustained growth in FY22 despite global disruptions.

"The performance of pharma exports in FY22 has been robust, sustaining growth despite the global trade disruptions and drop in demand for COVID-19-related treatments. Carrying forward this growth momentum, drug and pharmaceutical exports during April-October 2022 was 22 percent higher than the corresponding pre-pandemic period of FY20," it said.

Foreign investment in the pharma sector has also increased, crossing the $20 billion mark in September 2022.

FDI inflows reached $699 million by September 2022 after increasing four times over since 2017. This bump was supported by investor-friendly policies and positive outlook for the industry, the pre-Budget document said.

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The government regulates drug prices through National Pharmaceuticals Pricing Policy and provides affordable generic medicines through Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP).

The Department of Pharmaceuticals and the National Pharmaceuticals Pricing Authority has fixed ceiling prices of 119 formulations under the National List of Essential Medicines (NLEM) until December 31, 2022. In addition, retail prices for 2,196 formulations have been fixed under the Drugs (Prices Control) Order, 2013, the survey added.

"Until December 31, 2022, ceiling prices for 890 formulations of 358 drugs/medicines across various therapeutic categories under the NLEM 2015 have been fixed by the National Pharmaceuticals Pricing Authority," the survey said.

By the end of 2022, over 9,000 Pradhan Mantri Bhartiya Janaushadhi Kendras were opened under the PMBJP across India offering 1759 medicines and 280 surgical devices.

With agency inputs.

First Published:Jan 31, 2023 4:00 PM IST