Indian Medicines: Indian medicines have dominance in all the countries around the world. Its scope is continuously increasing. Indian medicines reach almost every country in the world. The Government of India is also taking vigorous steps to promote research and innovation to take the pharma sector to new heights.
This is the reason why the Indian pharmaceuticals industry holds a major share in the global pharmaceuticals industry. In terms of pharmaceutical production, it is at number three in the world in terms of volume and at number 14 in terms of value. We are at the first position in providing generic medicines to the world. India accounts for 20% of the global supply of generic drugs by volume. At the same time, we are also involved in the leading countries in making vaccines.
Emphasis on research and innovation in the pharma sector
At the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, Union Health and Family Welfare Minister Mansukh Mandaviya has said that the country has an enabling ecosystem to promote research and development along with innovation in the pharma-medtech sector under Atmanirbhar Bharat. is being made. Through this, concerted efforts are being made to become the world leader in the production of medical equipment and medicines. For this, concrete steps are being taken for research and development in Life Science. Along with this, the manufacture of traditional medicines is also being promoted. India is going to create a strong enabling infrastructure to provide health services to the world on a large scale through health tourism. The government will institutionalize medical tourism through the Heal in India initiative.
size of pharma industry in india
India’s pharmaceutical industry is currently worth $50 billion. It is expected to be $65 billion by 2024 and $130 billion by 2030. India’s pharma sector will grow at the rate of 11 to 12 percent in this decade. The most important thing is that the cost of manufacturing medicines in India is 33% less than in western countries. Drugs and pharma products worth $24.6 billion were exported in 2021-22. The share of the pharma sector in the total exports of the country is about 6 percent. India’s medicines go the most in America, United Kingdom, South Africa, Russia and Nigeria. Between 2014 and 2022, that is, in 8 years, India’s pharma industry had increased by 103 percent. India is among the top five pharmaceutical emerging markets in the world. Apart from being the world leader in generic drugs, India has the largest number of US-FDA compliant pharma plants outside the US. There are more than 3,000 pharma companies here. At the same time, there is a strong network of more than 10,500 manufacturing facilities with skilled human resources. It can be estimated from these figures that how big and important the pharma sector is in the Indian economy.
Number one in generic medicines
India is far ahead in terms of generic drugs compared to other countries of the world. Generic medicines made in India are exported to all the countries of the world including Africa and America. You will be surprised to know that India is the country that provides the most generic medicines to the countries of the world. If we look at the global statistics, 20 percent of generic medicines are exported from India abroad. This simply means that Indian medicines in countries around the world are up to international standards both in terms of quality and price. The demand for generic medicines made in India is also in many developing countries including America, Canada, Japan, Australia, Britain. India’s pharmaceutical industry provides 60,000 generic brands across 60 therapeutic categories. India meets 40 percent of the demand for generic drugs in the US. At the same time, we meet 50% of Africa’s demand for generic drugs. Along with this, India would have met 25 percent of the demand for all medicines, including generic ones, in Britain. India has a huge contribution in meeting the affordable drug needs of the poor countries of Latin America and Africa.
generic and branded generic drug
Actually, the chemical composition of generic drugs is similar to that of branded drugs, but they are sold under chemical names which are not familiar to the general public. For example, Crocin and Calpol come under branded drugs whereas in generic drugs, their name is Paracetamol. Now the question arises that what is the difference between a generic drug and another drug. Actually, when a pharmaceutical company makes a medicine after many years of research and testing, then after that it gets a patent for that medicine. Usually a patent for a drug is for 10 to 15 years. As long as the company gets the patent, only that company can make that medicine. But when the patent of the drug expires, then it is called a generic drug. That is, after the patent expires, many companies can make and sell that drug. But the name and price of the medicine of each company is different. In such a situation, that medicine is known as branded generic medicine. Only 9 percent of the medicines available in the Indian market are patented, while more than 70 percent of the medicines are branded generic. Only generic medicines are available in Pradhan Mantri Jan Aushadhi Kendra.
We are also a big player in vaccine
India has dominance in the world even in the matter of vaccine making. India’s vaccine making companies have made global recognition due to low cost and better quality. India only fulfills the needs of 60% of the world’s vaccines. India is the largest supplier of DPT, BCG and Measles vaccines. Apart from this, India also fulfills the requirements of 70% of the World Health Organization (WHO) vaccines. Along with this, the demand for cheap life saving drugs made in Indian pharmaceutical companies is also there all over the world. India is currently supplying vaccines to more than 150 countries of the world.
Demand for Indian medicines in China
In July 2018, China had decided to cut import duty on 28 Indian medicines. This also included all anti-cancer drugs. Since then, the demand for Indian medicines in China has increased rapidly. Earlier in 2017-18, there was an increase of 44 percent in the export of medicines from India to China. Due to being very cheap in comparison to western countries, the demand for Indian medicines, especially medicines related to cancer, is very high in China. Every year about 4.5 million people are suffering from cancer in China. There is a demand for Indian medicines in China when we import more than 60% of the total bulk drugs or raw materials imported for making medicines from China. However, China still imposes heavy import duties on many Indian medicines. India keeps on demanding to cut it down. If China does this, then the demand for Indian medicines will increase a lot in the Chinese market because of their cheapness.
preferred sector for investment
India’s pharma sector is one of the favorite sectors for foreign investors. 100% Foreign Direct Investment (FDI) is permitted in the pharmaceutical sector under the automatic route for greenfield pharmaceuticals. At the same time, 100% FDI is allowed in brownfield pharmaceuticals, in which 74% is under the automatic route and government approval is required for the rest. Between April 2000 and September 2022, FDI of $ 20.1 billion took place in this sector. This is three percent of the total FDI in that period.
preferred treatment site
Apart from the dominance of Indian medicines in foreign markets, India is the preferred destination for foreign citizens for medicines as well as treatment. Citizens of all the countries of the world are turning to India for treatment. These include residents of developed countries as well. India has become the hub of medical tourism for foreign nationals. The government is now going to institutionalize medical tourism through the ‘Heal In India’ initiative. India has also invited all the countries of the world to join this initiative. In terms of medical facilities, treatment is possible in India at a very low cost as compared to developed countries. India had liberalized its visa policy in 2014, which is also benefiting health tourism. Due to cheap treatment, India is ranked 10th in the Global Medical Tourism Index.
Increase in medical visa since 2014
Despite the ban due to the Kovid epidemic, in 2020, about two lakh foreigners came to India for treatment. Since 2014, the number of medical visas has increased very rapidly. In 2013, 59 thousand 129 medical visas were issued. In 2014, this figure was 75, 671. And in 2015, about one lakh 34 thousand 344 foreign nationals turned to India for treatment. In 2016, two lakh one thousand 99 citizens of 54 countries were issued medical visas. Foreign nationals coming to India for treatment include people from Asian and African countries, apart from these people from developed countries like America, Britain, Russia and Australia are also coming to India for treatment. At present, Chennai, Mumbai, Delhi, Ahmedabad and Bengaluru are the preferred destinations for foreign nationals for treatment. Since 2016, every year more than two lakh foreigners are coming here to get their treatment done. Currently, health tourism in India is a $6 billion market. By 2026, it is likely to reach $13 billion. The ‘Heal In India’ initiative will further accelerate the growth of this sector.
Why is it a preferred destination for treatment?
Treatment in India is cheaper as compared to developed countries of America and Europe. Due to world class medical and health facilities, highly trained doctors and professional health staff, foreign nationals are increasingly trusting treatment in India. The expenditure on transport, hotel and catering in India is much less as compared to developed countries. Availability of latest medical technology and equipment is also a big reason. India is also rich in alternative medicine systems such as Ayurveda, Siddha and Yoga Center, due to which a large number of foreigners are attracted to India for treatment. Foreign patients mostly come to India for heart surgery, knee replacement, liver transplant and cosmetic surgery. India has the lowest cost of treatment in Asia. Medical tourism is a better opportunity for India to earn foreign revenue. Along with this, India also has a chance to achieve a central position in the field of medicine in the international community.
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