Pharmaceuticals Industry In India - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Pharmaceuticals Industry In India - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The pharmaceuticals industry in the Indian market is expected to register a CAGR of 10.70%, over the forecast period (2022-2027).

The India Pharmaceutical Industry has emerged as greater power amid COVID-19. The growth of the India Pharmaceutical industry is largely supported by the government. The emergence of COVID-19 has led to the health crisis that the world has witnessed and had an unprecedented impact on various industries and specifically the healthcare and pharmaceuticals market. In April 2020, as the crisis deepens on a global level, the country uplifted the restrictions on the export of 24 pharmaceutical ingredients and medicines. In this current scenario with the sudden emergence of COVID-19, there is a high growing demand for vaccines as one of the most effective tools to protect against infectious diseases. For instance, in May 2021, under Atmanirbhar Bharat 3.0, Mission COVID Suraksha, the Government of India, accelerated the development and production of indigenous COVID vaccines “COVAXIN” The Department of Biotechnology, Government of India, provided financial support in the form of a grant to vaccine manufacturing facilities for enhanced production capacities, which was expected to reach 10 crore doses per month by September 2021. For these the public sector companies such as Haffkine Biopharmaceutical Corporation Ltd, Indian Immunologicals Limited (IIL), Hyderabad and Bharat Immunologicals and Biologicals Limited (BIBCOL), Bulandshahr got support from the government. Such joint efforts are augmenting the growth of the market.

The Indian pharma sector has a long history of developing and delivering world-class products at affordable costs across the globe. India has the greatest number of United States Food and Drug Administration (USFDA) approved units (741 as of August 2021). Indian pharma companies offer products in segments such as generic drugs, over-the-counter (OTC) medicines, active pharmaceutical ingredients (APIs), vaccines, contract research and manufacturing, and biosimilar and biologics. For another instance, in 2021 according to the Indian Brand Equity Foundation Report, in the case of generics, India accounts for 20% of global exports, and for the period 2021-22, the export of drugs and pharma products stood at USD 24.6 billion compared to USD 24.44 billion as of 2020-21. This constitutes about 20% of the share globally in exports of generic pharmaceutical products. To encourage investment, the approval time for new facilities has been streamlined. India plays a very crucial role in the generic aspect of the global pharmaceutical industry.

Moreover, as per the same source, United States is India's primary export market for pharmaceuticals. For instance, in 2021 India Brand Equity Foundation reported that India ranks 3rd in volume and 14th in value concerning pharmaceutical production in the global industry and India also supplies over 50% of the global demand for vaccines, 40% of generic demand in United States, and 25% of all the medicinal products in United Kingdom.

Therefore, increasing the export of generic medicine and increasing research and development activities will boost the market growth in the forecast period. However, the lack of a stable pricing and policy environment and lack of development of an innovative drug may hamper the growth of the studied market.

Key Market TrendsThe Respiratory Drug Segment is Expected to Show Healthy Market Growth in the Forecast Period.

Respiratory diseases are the type of disease that affects respiratory tracts and lungs. It may be caused by several ways such as infection, smoking, tobacco, passive smoking, radon, asbestos, or other forms of air pollution.

The common respiratory diseases include asthma, chronic obstructive pulmonary disease (COPD), pulmonary fibrosis, pneumonia, and lung cancer. Respiratory disease is also called lung disorder and pulmonary disease. The drugs that commonly comprise this therapeutic category include bronchodilators, corticosteroids, mast cell stabilizers, Anti-IgE antibodies, leUnited Kingdomotriene receptor antagonists, antivirals, pulmonary surfactants, respiratory stimulants, etc.

The rising burden of respiratory diseases, and increasing air pollution, coupled with research and development in the field and the launch of new products in the market are uplifting the growth trend in the segment.

For instance, in 2021 the World Health Organization reported that the self-reported prevalence of any diagnosed chronic lung disease among people of age 45-59 years is 6%. The most prevalent lung disease among this age group in India is asthma which accounts for 4.4% followed by chronic obstructive pulmonary disease (COPD) which equals 2.1% and bronchitis with 1.1%. Such a high burden of diseases among age groups is leading the way toward the growth of the segment. For instance, in June 2022 Glenmark becomes the first pharmaceutical company to launch an indacaterol + mometasone fixed-dose combination drug for asthma in India. This is an innovative drug Indacaterol, a long-acting beta-agonist, and mometasone furoate, an inhaled corticosteroid that is approved by the DCGI (Drug Controller General of India).

Therefore, the respiratory drug segment is expected to witness significant growth over the forecast period due to the above-mentioned factors.

Competitive Landscape

The Indian pharmaceutical market is fragmented in nature due to the presence of many companies operating globally as well as regionally. The competitive landscape includes an analysis of a few international as well as local companies which hold the market shares and are well known as Cipla Inc., Dr. Reddy's Laboratories Ltd., Lupin, Sun Pharmaceutical Industries Ltd., Cadila Pharmaceuticals, GlaxoSmithKline pIc, Biocon, Pfizer, Novartis AG, Merck & Co., Torrent Pharma, Divi's Laboratories, Aurobindo Pharma Limited, Mankind Pharma, Abbott India.

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