India to Achieve 10% Growth in Pharmaceutical Industry in 2024

Exports of Indian pharmaceutical products achieved significant growth over the years, especially after the pandemic. In 2023, the export of pharmaceutical products rose by 12.2% from the previous year. This two-digit growth rate occurred when India’s overall exports to the world declined by 3%.

From Jan to March 2024, India exported $6.3 billion of pharmaceutical products worldwide. The export value increased from $1.8 billion in Jan to $2.3 billion in Feb.?

Explore, what are the possible factors behind the success of the Indian pharma industry by identifying the top most traded commodities. Here is how the Indian pharma Industry works –

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India’s Pharmaceutical Trade

The vastness of the Indian pharma industry is too huge, which secured 3rd ?and 13th rank by volume and value, respectively. Europe and America are emerging as the leading nations for pharma products exported by India. Here are some glimpses of the pharma trade –

1. ? ? ? The export of Indian pharmaceutical products increased by USD 8.8 billion from 2019 to 2023.

2. ? ? ? The import value marginally increased by USD 400 million in the same year.

3. ? ? ? In the year 2023, India exported 88.5% more pharma products than the value of its imports.

4. ? ? ? Export increased by 12.2% in 2023 compared to the previous year.

5. ? ? ? Import of pharma products drastically declined after 2022. This decline shows India’s export-oriented policies and the business-friendly environment to increase trade with other countries.

The rise in India’s export of pharmaceutical products shows that it is focusing more on exports and expanding the industry in a trillion-dollar market. As per our data, by 2023, the Indian pharmaceutical industry will be more than USD 130 billion.

India’s Top Trading Partners for Pharma Products

The USA has become India's most trusted trade partner for exporting and importing pharmaceutical products. Apart from the USA, Europe also plays a significant role in trade with India. For instance –

1. ? ? ? The USA imported USD 7.9 worth of Indian pharmaceutical products in 2023 and became the biggest trading partner.

2. ? ? ? The UK and South Africa shared the 2nd and 3rd positions for import of Indian pharma products.

3. ? ? ? Most Indian pharma product shipments arrived from the USA, Germany, and China with a trade value of $502, $451, and $171 million respectively in 2023.

4. ? ? ? More than 34% of India’s exports of pharmaceuticals went to the USA in 2023.

5. ? ? ? For the import of certain commodities, India is more dependent on the USA and Europe.

India’s Top Exported Pharmaceutical Products

Till now, we have covered India’s top trading partners for pharmaceutical products and the last five-year trends for the export and import of the same commodities.

Explore what are the pharmaceutical products that India exports to the world. Here are some of the top products exported in 2024.

1. ? ? ? India exported more than USD 5.7 billion of mixed or unmixed medicament products in the first three months of 2024.

2. ? ? ? Animal and human blood became the second most exported commodity with USD 433 million in the same year.

3. ? ? ? It’s noticeable that exports of all top pharmaceutical products increased from Jan to March in 2024.

4. ? ? ? ?Analysis based on year-on-year growth shows that the Indian pharmaceutical industry will be worth USD 130 billion by 2030.

?What Are the Reasons for Growth In The Pharma Industry?

This exponential growth of Indian pharma consists of many factors, some are mentioned below –

1. ? ? ? Market Access Initiative –

Under this scheme, Govt provides financial assistance to pharma companies for specific activities like patent filing, certificates, etc., to enter the new markets.

2. ? ? ? ?Product Linked Incentive (PLI) schemes –

This provides rebates and subsidies to companies on incremental growth who are manufacturing in India. The PLI covers key pharmaceutical product ingredients and Generic medicine.

3. ? ? ? Duty Free Tariff Preference Scheme –

India has signed multiple trade agreements with many countries that allow duty-free or reduced-duty access to Indian pharma products.

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Due to these initiatives, exports from India have registered double-digit growth and attracted worldwide pharma manufacturers to set up their plants. Hence, it becomes crucial for the government to establish a business-friendly environment to achieve the target of USD 130 billion by 2030.