SPEARHEADING PHARMA INNOVATION

By prioritising value over volume, India's pharmaceutical industry can become a world leader in high-value exports and nearly triple its revenue by 2030, significantly impacting global healthcare

- Kiran Mazumdar-Shaw

As the world's third-largest manufacturer of medicines by volume and the largest generics exporter, India has substantially impacted global healthcare. We provide cost-effective medicines to millions worldwide, with approximately one in three' pills consumed in the US and 'one in four' in the UK being produced in India. Our success in delivering accessible HIV treatment and low-cost vaccines has garnered international acclaim, earning India the well-deserved title of the 'Pharmacy of the World.' This success stems from our expertise in small- and large-molecule drug research and manufacturing, our ability to produce high-quality medicines at affordable prices, and our swift adaptation to global health crises, such as the Covid-19 pandemic.

The growth of India's pharmaceutical exports is impressive, increasing from -$19 billion (Rs 1.6 lakh crore, at the current exchange rate) in FY19 to -$28 billion (Rs 2.4 lakh crore) in FY24. However, India's 14th rank in terms of value highlights the potential to climb further up the value chain. To shift the sector from volume-based to value-based global leadership, it is crucial to grasp the potential that lies ahead for this industry.

The emerging opportunity: As non-communicable diseases like cancer and diabetes become major health challenges, biologics are emerging as the standard of care. Biologics, a crucial component of interventional medicines, are projected to comprise almost 40 per cent of all pharmaceutical spending by 2028 when global spending on medicines is expected to reach -$2.3 trillion (Rs 193 lakh crore).