Figures are that we import 25% of our generic prescription drugs, and ‘only’ 7% from India, but that’s not an insignificant amount.
What if it stops? And what about where these other countries source their raw materials?
This is the secondary effect of this new disease virus that can cause more trouble than the disease itself.
India sources about 80% of raw material for drugs from China
- Situation is likely to worsen from April, manufacturers say
The Indian pharmaceuticals market is the third largest in terms of volume and thirteenth largest in terms of value. It has established itself as a global manufacturing and research hub. A large raw material base and the availability of a skilled workforce give the industry a definite competitive advantage. The Indian pharmaceutical industry is expected to grow at a compound annual growth rate (CAGR) of 22.4 per cent to touch US$ 55 billion by 2020.
The Indian Pharmaceutical market is dominated by generic drugs which constitutes nearly 70 per cent of the market, whereas Over the Counter (OTC) medicines and patented drugs make up to 21 per cent and 9 per cent respectively.
EXPORTS AND ADVANTAGE INDIA
Pharmaceutical* export from India stood at US$ 19.13 billion in 2018-19 and reached US$ 9.36 billion in 2019-20 (till October 2019).
- It is expected to grow by 30 per cent to reach US$ 20 billion by the year 2020.
- In 2018-19, top importers of India’s pharmaceutical* products were USA (US$ 119.18 million), Russia (US$ 10.33 million), UK (US$ 9.83 million), South Africa (US$ 3.63 million) and Nigeria (US$ 1.71 million).
- India is expected to rank amongst the top three pharmaceutical markets in terms of incremental growth by 2020.
- India is the largest supplier of generic medicines globally (20 to 22 per cent of global export volume)
- India has one of the lowest manufacturing costs in the world. It is lower than that of USA and almost half of Europe.