India’s Pharmaceutical Exports Set To Reach $350 Billion By 2047

India’s pharmaceutical exports are poised for significant growth, with projections estimating that the industry will reach a remarkable $350 billion by 2047. This represents a tenfold to fifteenfold increase from the current export levels. As a global leader in generic drug supply, India plans to further elevate its position by moving up the value chain, focusing on specialty generics, biosimilars, and innovative pharmaceutical products.

A new report from Bain & Company, in collaboration with Indian pharmaceutical bodies, outlines the ambitious growth trajectory for India’s pharmaceutical sector. While the country currently ranks 11th in pharmaceutical export value, expect to secure a position among the top five nations by 2047.

By India’s 100th year of independence, exports could soar to $350 billion.

Transitioning From Volume To Value: The Key Drivers Of Growth

The shift from a volume-based approach to a value-driven strategy will be critical to achieving this ambitious goal. The report identifies three key areas that will contribute to this transformation: Active Pharmaceutical Ingredients (APIs), biosimilars, and generic formulations.

1. Active Pharmaceutical Ingredients (APIs): A Major Growth Area

India’s API exports, currently valued at $5 billion, are expected to reach $80-90 billion by 2047. With China currently dominating 35% of the outsourced API market, India has a significant opportunity to capture market share.

Global supply chain diversification efforts, such as the U.S. Biosecure Act, create new avenues for India to strengthen its domestic API production. Ensuring self-sufficiency in critical raw materials and investing in bulk drug parks will be vital for this sector’s growth.

2. Biosimilars: A Growing Segment

India’s biosimilar exports, value at $0.8 billion today, project to grow fivefold to $4.2 billion by 2030 and could reach $30-35 billion by 2047. Increased investments in research and development, regulatory simplifications in key markets like the US, and expansion of production capacity will enable India to strengthen its position in the global biosimilars market.

3. Generic Formulations: The Largest Contributor to Exports

Generic formulations remain the largest segment of India’s pharmaceutical exports, contributing $19 billion (70% of total exports). This segment expect to grow to $180-190 billion by 2047. Moving beyond traditional generic products, India must focus on enhancing its capabilities in specialty generics. These products offer higher margins and have greater potential in global markets.

Unlocking India’s Pharmaceutical Potential

Viranchi Shah, National President of the Indian Drug Manufacturers Association (IDMA), emphasized the need for targeted policy measures to unlock India’s full pharmaceutical potential. “India must scale up efforts to strengthen its API industry, address non-tariff barriers for exports, and establish country-specific export strategies,” Shah said.

Also Read: Stock Market Trades Lower As Trump Threatens New Tariff On All Steel; Aluminium Imports

The report also points to India’s significant role in global vaccine supply. India currently supplies 55-60% of UNICEF’s vaccines but must shift its focus to high-value markets. Investments in clinical trials and advanced manufacturing will be key to expanding India’s footprint in innovative pharmaceutical products, with exports in this area potentially reaching $13-15 billion by 2047.

India’s contract development and manufacturing organizations (CDMOs) and contract research organizations (CROs) set to experience strong growth. Supply chain diversification efforts from developed economies will likely boost demand for India’s contract manufacturing capabilities, presenting new opportunities for the sector.

Collaboration Between Government And Private Sector Crucial For Success

Industry experts stress the importance of collaboration between the government and the private sector to realize India’s pharmaceutical export potential.

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA), highlighted the sector’s contribution to the Indian economy, noting that it supports 2.7 million jobs and generates a trade surplus of $19 billion. “To achieve our vision for 2047, doubling down on pharmaceutical exports is essential,” Jain said.

Private equity and venture capital investments in India’s pharmaceutical sector have surged. Healthcare’s share of PE/VC investments rose from 6% in 2021 to 17% in early 2024. Regulatory harmonization, expansion of production-linked incentives (PLI), and R&D-focused incentives are expected to play a key role in fostering further growth in the industry.

The Vision For India’s Pharma Industry In 2047

Raja Bhanu, Director General of the Pharmaceuticals Export Promotion Council of India (Pharmexcil), outlined a bold vision for the country’s pharmaceutical sector. “India’s generics known for quality, affordability, and scalability.

By investing boldly in specialty generics, biosimilars, vaccines, and advanced therapies, we aim to reach the $350 billion export milestone by 2047,” Bhanu said.

With concerted efforts and strategic investments, India is on track to transform its pharmaceutical industry into a global powerhouse, positioning itself as a leader in both volume and value-driven pharmaceutical exports.