India's pharmaceutical sector is driven by a robust scientific and technological base, leading globally with the largest vaccine production, accounting for ~60% of global vaccine production and supplying to over 150 countries. Major segments of the pharma sector in India include generic drugs, OTC medicines, bulk drugs, vaccines, contract research and manufacturing, biosimilars and biologics. With pharma exports standing at $25.4 Bn in FY 2022–23 and the USA being the largest export destination for Indian pharmaceuticals, the industry is propelled by an ambition to achieve a $450 Bn market by 2047. Telangana, being the only state in the world with 214+ USFDA-approved facilities, 20+ life sciences and medtech incubators, and home to ~1,000 pharma and biotech companies with a valuation of $50 Bn, showcases the country's ambition to become the Pharmaceutical Hub of the World.
The pharmaceutical manufacturing landscape and India's economic growth potential attract investments into the sector, making the pharmaceutical sector the ninth largest segment in attracting FDI inflows till September 2023. India contributes up to 70% of the WHO's demand for Diphtheria, Tetanus and Pertussis (DPT) and Bacillus Calmette–Guérin (BCG) vaccines and 90% of the WHO's demand for the measles vaccine. Research and development in the Indian pharmaceutical industry have been fuelled by the government's schemes, like the Production-Linked Incentive Scheme (PLI) for Pharmaceuticals, which aims to enhance India's manufacturing capabilities by increasing investment and production in the sector. The sector also boasts a liberal FDI policy. 100% FDI is permissible through the automatic route for greenfield investments, up to 74% FDI is permissible through the automatic route for brownfield investments and beyond 74% FDI is allowed under the government route.
Furthermore, to cater to the availability of quality generic medicines at affordable prices, about 10,000 Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) have been opened across the country, and 1,965 medicines and 293 surgical equipment covering all major therapeutic groups, such as anti-infectives, anti-diabetics, cardiovascular, anti-cancer, gastro-intestinal, etc., have been added to the PMBJP for sale. To offer cost-effective solutions to the world, along with qualified and skilled scientists and researchers, India aims to be a major catalyst in the global supply chains, ranging from generics to complex formulations, biologics, etc.
(Source: https://www.investindia.gov.in/sector/pharmaceuticals)