Why The Pharmaceutical industry is Highly Successful in India

Why The Pharmaceutical industry is Highly Successful in India

Why The Pharmaceutical industry is Highly Successful in India – The reasons behind the success of the Indian Pharma industry are many. Our country has one of the largest pharmaceuticals offerings in the world. We hold a proud position of the 3rd largest industry by volume. In terms of size, we are 13th in the world. The Indian pharma industry has come a long way modifying its shape. In this post, we are going to discuss why the pharmaceutical industry is highly successful in India.

why the pharmaceutical industry is highly successful in India

The Indian pharma industry is a highly appreciated all over the world. The industry was once ruled by the British government. We had a handful of pure Indian pharma industries at that time. The current time shows more than hundreds of pharma companies working all over India and the world. This industry has been striking and achieving great goals over the past few decades. We are one of the largest contributors of pharma in the world. We will tell you about the reasons why the pharmaceutical industry is highly successful in India.

Overview of the Indian Pharmaceuticals Industry

The pharma industry in the early 1900s was under the rule of British. Indian pharmaceuticals industry was majorly ruled under the British rule and foreigner which brought western medicines into existence here. In contrast to pharma companies that were originally Indian owned and run, a very handful in the big industry. Post-independence brought the new light. The government introduced acts and regulation to bring forth an industrial revolution. The Indian pharma industry grew after the government implemented the Industrial Policy Resolution of 1956. It placed the companies in Schedule B which encouraged private sectors to grow and bring better opportunities for better future. That time witnessed a turnover of 100 crores which was in 1962.

In starting of 19070s, the government passed the rule of Indian Patent Rights. This helped shape the industry to carve what it is today. Today, Indian pharmaceuticals share a dominating 20% of manufacturing and exports with the voluptuous volume of generics and APIs. Therefore, today we are the 3rd largest manufacturer of generic drugs in the world. In 1991, Economic Liberalization act set the boundaries free for foreign investors and traders to make FDI (Foreign Direct Investment). Companies from around the globe were attracted due to wide fine quality resources, skilled and cheap human resource and efficient technology to manufacture.

Reasons Behind The Success of The Indian Pharma Industry

Those where the times and today the pharma industry touches a new sky! The Indian pharmaceuticals industry of 21st century is highly competitive and recognized across the globe. If you currently look at the success rates then you should know what are the reasons behind the success of the Indian pharma sector:

why the pharmaceutical industry is highly successful in India

Biggest Manufacturer of Generic Drugs

India has a vast capacity to meet the growing demands due to manufacturing capacity. We have been supplying almost 20% of the world with cheap yet better quality medicines. With the help of reverse engineering technology, our country has been manufacturing generic drugs in abundance Here are some facts:

  • More than 72 percent of the market of our country produces are generic drugs. The counterparts patent drugs and over the counter (OTC) medicines combined are very less in this case.
  • 200+ units US FDA-approved pharma units. This means 1/3rd of abbreviated new drug applications (ANDA) or approved generic drugs.
  • 20 to 24 percent of the global generic drugs share.

Reverse Engineering Technology

Though the Patent Acts came into existence in 1970 and the Drug Policy in 1978 the industry was short of products patents rights. Being a science based-industry and having a niche in complex drug manufacturing, our industry has transformed itself over the decades. We have better technologies and skilled to sustain better production output from the sector. The Pharma companies study, analyze and then manufacture the drugs using different process or method. This is a part of process patent which involved the Indian Pharma industry.

  1. The technology saved up to 30 percent of Research and Development (R&D) cost.
  2. The multinational companies saved up to 50 percent on R&D.

Largest Exporter of Pharma Products and Drugs

Our country India has been manufacturing in abundance. Post GST, the industry has seen a double-digit growth after 18 months. It has helped attract foreign direct investment which is one of the aims of implementing GST:

  • Amongst the largest manufacturers and exporter of active pharmaceutical ingredients (API) is India.
  • It is expected that India pharma exports to reach the US $20 billion by the end of 2020.


The government of India is the main reason behind the eternal success of the Indian Pharma industry. The introduction of excise duty-free zones helped shape the industry. These zones particularly helped small, medium and fresh pharma companies to grow as manufacturers. The concessional benefits and schemes have helped attain goals over the years.