Tag: Generic Drugs Exports from India

India’s pharmaceutical industry is entering a transformative phase. In FY 2023-24, the sector was valued at around US$ 50 billion, ranking 3rd globally in terms of production volume, and exports made up more than half of that value. With ambitious projections to reach US$ 130 billion by 2030, India is not just fulfilling global demand for generics and vaccines, it is also shaping health diplomacy, self-reliance, and innovation. This article dives into what’s driving this growth, what challenges lie ahead, and how recent government policies are redefining India’s role as the “Pharmacy of the World". Join Telegram :Join our Telegram group to get instant alerts and study materials on current affairs and important topics: Link India’s Pharma Sector – Detailed UPSC Notes India: Pharmacy of the World India is globally recognized as the largest provider of generic medicines, fulfilling nearly 20% of global demand by volume. It is also the largest vaccine producer, supplying to UN agencies (UNICEF, WHO, PAHO) and countries across Africa, Latin America, and Asia. The term “Pharmacy of the World” is rooted in India’s ability to supply affordable, quality medicines at scale, crucial for global health security. Example: During the COVID-19 pandemic, India supplied COVAX vaccines to over 90 countries, reinforcing its health diplomacy. Production & Exports Domestic market size: ~US$ 50 billion in 2023–24, projected to touch US$ 130 billion by 2030. Exports: Crossed US$ 30 billion in FY 2024–25, recording ~9% growth. Breakdown: Nearly 70% exports are finished formulations (tablets, syrups, injectables), while APIs and intermediates make up ~20%. India ranked 11th globally in value terms of pharma exports in 2023, but in terms of volume it is among the top. This indicates a value–volume mismatch: India supplies large quantities but at lower value, relying on generics. Join Telegram :Join our Telegram group to get instant alerts and study materials on current affairs and important topics: Link Meeting Global Generic Demand India is a trusted supplier of generics for both developed and developing countries. US and EU: Depend heavily on Indian generics to keep healthcare affordable. Africa and Latin America: Rely on India for essential drugs, vaccines, and affordable medicines for TB, HIV, and malaria. Despite this dominance, India lags in biosimilars, specialty generics, and patented drugs, where R&D investment and margins are higher. To remain competitive, India must move up the value chain from being just a generics hub to becoming an innovation-driven pharma leader. National List of Essential Medicines (NLEM) NLEM is prepared by the Ministry of Health & Family Welfare and implemented by the National Pharmaceutical Pricing Authority (NPPA). Objective: Ensure that critical medicines remain affordable and available for all citizens. Latest revision (2022) expanded the list to 384 medicines, adding crucial drugs for cancer, diabetes, cardiovascular, and anti-infectives. Impact: Protects patients from excessive pricing, but reduces profit margins for companies, discouraging innovation. For UPSC, NLEM represents the balancing act between public health needs and industry growth. Rising Import Dependence India imports ~70% of bulk drugs (APIs) and intermediates, largely from China. Critical APIs like paracetamol, antibiotics, vitamins, and anti-diabetic drugs have over 90% import dependence. Risks: Any supply disruption (like during COVID-19) or geopolitical tension can threaten India’s drug security. Government response: PLI Scheme for Bulk Drugs and 3 Bulk Drug Parks announced to revive domestic API production. Import substitution is not just an economic issue but also a national security priority. Join Telegram :Join our Telegram group to get instant alerts and study materials on current affairs and important topics: Link Good Manufacturing Practices (GMP) GMP is a quality assurance framework ensuring medicines are produced consistently and safely. Core principles: quality systems, validated processes, hygiene, contamination control, regular audits, record keeping, and accountability. In India, GMP is enforced by CDSCO and state drug regulators. Export markets (US, EU, WHO prequalification) demand strict GMP compliance. Recent crackdown (2024): Over 36% of Indian drug units inspected were shut for non-compliance, after deaths linked to contaminated syrups in Africa. Lesson: Without strict GMP, India’s global trust as Pharmacy of the World is at risk. Key Laws & Regulators in India’s Pharma Sector The Drugs and Cosmetics Act, 1940 The primary law governing manufacture, import, distribution, and sale of medicines in India. Ensures drug safety, quality, and efficacy. Forms the legal backbone of India’s pharma regulation. Central Drugs Standard Control Organisation (CDSCO) India’s national drug regulatory authority, under the Ministry of Health & Family Welfare. Oversees approvals, licensing, quality checks, and pharmacovigilance across the country. Drugs Controller General of India (DCGI) Head of CDSCO. Responsible for approving new drugs, clinical trials, and vaccines. Enforces safety standards and regulates large-scale drug manufacturing. US Food and Drug Administration (US FDA) Regulates Indian medicines entering the US market. FDA inspections of Indian plants are critical for export approvals. Any FDA ban or warning letter can seriously impact India’s exports. Global Standards (EMA, WHO, etc.) Indian pharma firms must comply with both Indian laws (CDSCO, DCGI) and international regulators (FDA in US, EMA in Europe, WHO-GMP for global supply). Compliance ensures global trust and wider market access. Join Telegram :Join our Telegram group to get instant alerts and study materials on current affairs and important topics: Link Union Budget Allocations Budget 2021–22: ₹73,932 crore for health sector; focus on vaccine production and PLI schemes for domestic manufacturing. Budget 2024–25: ~₹90,958 crore for health sector; emphasis on innovation, bulk drug parks, and affordability. Trend: Rising allocations show government’s intent to make India a self-reliant and innovation-driven pharma hub. Key Schemes Supporting Pharma PLI Scheme for Bulk Drugs (2020): ₹6,940 crore outlay for APIs and intermediates to cut import dependence. PLI Scheme for Pharmaceuticals (2021): ₹15,000 crore outlay to boost global competitiveness in formulations and innovation. Bulk Drug Parks Scheme: State-level pharma parks with common infrastructure (testing labs, effluent treatment, logistics hubs). Pharmaceutical Research & Innovation Programme (PRIP): ₹5,000 crore (2023–28) for R&D, patents, and innovation. Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana (PMBJP): Expanding low-cost medicine outlets across India. These schemes aim to build self-reliance (Atmanirbhar Bharat) while promoting exports. Jan Aushadhi Kendras – Social Impact Objective: Provide affordable generic medicines to citizens, especially low-income groups. Scale: ~16,912 Kendras as of June 2025, with a basket of 2,110 medicines and 315 surgical products. Reach: 10–12 lakh daily users benefit from Jan Aushadhi outlets. Savings: Citizens have saved ~₹38,000 crore over the last 11 years compared to branded drugs. Empowerment: Over 6,800 women entrepreneurs run Kendras, linking health access with livelihoods. For UPSC, PMBJP is an example of inclusive healthcare policy + women empowerment + affordability. Major Challenges Quality control failures dent India’s credibility abroad. Heavy API dependence makes the industry vulnerable. NLEM price controls restrict profit margins and discourage R&D. Innovation gap: Too much reliance on generics, weak in new drug discovery. Global competition from China, US, ASEAN hubs. Skill shortage in biotechnology, biosimilars, and clinical research. Join Telegram :Join our Telegram group to get instant alerts and study materials on current affairs and important topics: Link Way Forward Build domestic API self-sufficiency through PLI and parks. Strengthen regulatory capacity of CDSCO and state drug controllers. Invest in R&D, AI, big data, and precision medicine. Enhance public–private partnerships for vaccine and drug development. Enforce strict GMP compliance to protect India’s export credibility. Expand Jan Aushadhi Kendras and integrate them with Ayushman Bharat. Diversify export markets to Africa, Latin America, and ASEAN. Join Telegram :Join our Telegram group to get instant alerts and study materials on current affairs and important topics: Link Join Instagram:Follow us on Instagram for quick facts, infographics, and updates on UPSC and government exams: Link Watch Video – Click Join YouTube:Subscribe to our YouTube channel for daily updates on current affairs, environment, governance, and more: Link Join WhatsApp:Join our WhatsApp group to get instant alerts and study materials on current affairs and important topics: Link

Tag: Generic Drugs Exports from India

India Pharma Sector 2025: Pharmacy of the World & Future Growth

EverythingIAS

Contact