Why The Pharmaceutical industry Is Successful in India?

Why Is The Pharmaceutical industry Successful in India? – Want to know the reasons behind the success of the Indian pharma industry? How is the pharma sector in India so successful? The Indian Pharmaceuticals industry has been gaining great heights of success. The industry offers some of the widest offerings on the global platform. The early 90s saw the industry establish itself from a handful of pharma companies. This raises the question arises why the pharmaceuticals industry is successful in India.

Why The Pharmaceutical industry Is Successful in India

A Look at The Pharma Industry in India

The Pharma industry during the British rule saw a slow growth. Our country had a fewer number of pure Indian Pharma companies. The colonial patent law, 1911 helped attract a lot of foreign investors but stagnated the growth of Indian pharma companies. After the Indian Independence, the government introduced laws to promote the industry. The laws were made in favor to grow the pharma sector in India.

The Patent Act in 1970, Drug Policy in 1978, The Economic Liberalization in 1991 etc made the pharma industry of today. The main benefit for our pharma industry was the better opportunity for research and development. The availability of cheap labor, quality man power, quality and cheap resources attracted the growth of Indian pharma industry. A step towards globalization meant better expansion for the Indian pharma industry.

The current scenario is appreciating. The Indian pharma industry stands 3rd in volume and 13th in size on the world platform. On the global platform, we have been covering an impressive 1 to 3 percent with a CAGR growth of 10 percent annually. Currently, the pharma sector is valued at the US $36.7 billion with a national growth of CAGR 15.92 percent every year.

Reason Behind The Success Of The Indian Pharma Industry

The history of the Indian pharma industry is inspiring. India is one of the major pharma industries of the world. We have grabbed a position in top 15 pharma industries of the world. The industry’s success was contributed by a host of things. Here take a look at the why the pharmaceuticals industry is successful in India.

Generic Drugs Manufacturing

The Indian pharmaceuticals industry is one of the largest makers of generic drugs and Active Pharmaceutical Ingredient (API) in the world. Our country has been widely known for providing quality and cheap drugs. The generic drugs share in the market is 72 percent. It is more than the combined share of patent drugs and over the counter (OTC) medicines.

The generic drugs of India contribute 20 percent to 24 percent of the global generic market. We have the widest number of US FDA-approved pharma units i.e. 200+ in number. We hold the largest number of approved generic drugs or abbreviated new drug applications (ANDA) approvals.

Pharma Exports         

India is widely known for quality exports throughout the globe. The pharma exports are most popular. In India, the pharma exports are the fifth largest items. It contributes to good foreign direct investment (FDI).  Being some of the largest manufacturers, we export almost 40 percent of our pharma production. The export of drugs and APIs are the largest contributors. In the fiscal year 2016, the pharma industry created a value of USD 651 million.

Reverse Engineering Technology

The science-based industry of Pharmaceuticals achieved the reverse engineering technology. The patents act formed two laws. It included product patent and process patents. The process patent helped the industry grow as leading manufacturers of the world. The reverse engineering technology means to study, analyze, copy and manufacture the drug using a different process. We could sustain the pertaining complex drug manufacturing effectively.  The reverse engineering technology resulted in a decrease of research and development cost by 30 percent to 50 percent.


The government of India has been the backbone of the all the industries. The initial steps taken to promote the pharma industry helped the sector grow. The introduction of excise duty-free zones leads to healthy and profitable growth.

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