Synopsis
According to a recent report, the Indian pharmaceutical sector has achieved a remarkable 8% CAGR growth and a 9% increase in export rates for 2024, highlighting its position as a key player in the global market.Key Takeaways
- 8% CAGR growth in the Indian pharma sector
- 9% increase in exports in 2024
- World's largest supplier of generic medicines
- Significant strides in emerging modalities
- Improved compliance metrics with USFDA
New Delhi, Feb 28 (NationPress) The Indian pharmaceutical sector has experienced a remarkable growth rate of 8% CAGR and a notable 9% increase in export rates in 2024, as highlighted by a recent report.
The analysis by McKinsey & Company indicates that the pharmaceutical industry in the nation is undergoing rapid production expansion. By enhancing its capabilities in APIs and biotechnology, it has achieved growth that is twice the global average.
India has also established itself as the world’s largest provider of generic medicines, showcasing a 9% growth rate in pharmaceutical exports, nearly doubling the global average, according to the report.
Currently, India fulfills 20% of global demand for pharmaceuticals. This includes supplying over 40% of generic medicines to the US and 25% to the UK. The nation also accounts for more than 60% of the world's vaccines and 70% of global antiretroviral medications for HIV treatment.
Furthermore, the report indicates that India is making strides in emerging modalities such as mRNA, cell and gene therapies, and antibodies, which are growing at a rate of 13-14% CAGR, outpacing traditional drug growth.
Significantly, there has been an increase in the number of US Food and Drug Administration (USFDA) registered generic manufacturing sites in India. As of 2024, India boasts a network of 752 FDA-approved, 2,050 WHO GMP-certified, and 286 EDQM-approved facilities.
The past few years have seen a substantial improvement in compliance metrics, with the instances of ‘official action indicated’ (OAI) following USFDA inspections decreasing by 50% from 2013-14 to 2023-24.
The pharmaceutical sector has also embraced green manufacturing initiatives, with 10 of India’s top 20 pharma companies committing to over 30% emissions reduction by 2030.
Despite these advancements, the industry faces significant challenges as it approaches a critical juncture. Disruptions such as digital transformation, smart automation, and the emergence of new treatment modalities could redefine pharmaceutical operations. Factors such as geopolitical shifts, nearshoring trends, and increasing sustainability demands also present potential risks, according to the report.
“India’s pharmaceutical industry is robust today due to the groundwork laid over the past decade,” stated Vishnukaant Pitty, Partner at McKinsey & Company.
“With disruptions ahead, it is vital for the industry to adopt these strategic themes and fundamentally transform its operating model to unlock a high-performance future,” he added.
