‘Indian pharma industry likely to grow to $130 billion in size by 2030’

June 02, 2023 06:56 pm | Updated 06:56 pm IST - MUMBAI

The Indian pharmaceutical industry is projected to grow at a CAGR of over 10% to reach a size of $130 billion by 2030, industry officials said. They said technology would play a crucial role to achieve this target. 

“The Indian Pharmaceutical industry is valued at around $50 billion and is expected to grow at a CAGR of 10.7% by 2030. The pharmaceutical market in India is expected to reach $65 billion by 2024, and $130 billion by 2030,” Avinash Kumar Talwar, Vice-President, Dr. Reddy’s Laboratories said while speaking at the ninth edition of PharmaLytica in Hyderabad according to a statement. 

“As the growth of pharma market is coming from complex molecules, it will force companies to invest and build future state-of-the art labs. The demand for sophisticated equipment and instruments to aid in the process of drug discovery, development, analysis and modelling of the compounds will continue to grow at the same pace,” he said.

Yogesh Mudras, Managing Director, Informa Markets, India, the organisers of PharmaLytica in a press statement released here said, “The growth potential of the Indian pharmaceutical industry is attributed to its large domestic market, cost-effective manufacturing capabilities, and skilled workforce. Supported by the government’s policies and initiatives like ‘Pharma Vision 2020’ and ‘Make in India’, India aims to become a global pharmaceutical hub.” 

Stating that the pharmaceutical industry is moving towards transparency and visibility, R.K. Agrawal, National President, Bulk Drug Manufacturers Association (India) said automation and technological advancements contribute to increased efficiency and reduced reliance on manual labour. 

“Despite a highly regulated industry, with approximately 30 Government Departments monitoring operations, the pharma sector has embraced stringent [anti-] pollution norms, resulting in improved conditions within pharmaceutical plants,” he said. 

“Also, once the new Pharma City comes up in Telangana, investment of more than ₹15,000 to ₹20,000 crore are easily possible by the local API manufacturers, which will further attract more FDI,” he added. 

Focused on achieving the aspirational growth, Harish Jain, President, Karnataka Drugs and Pharmaceutical Manufacturers Association (KDPMA), said, “India’s aspirations in the pharmaceutical industry go beyond its current ranking of 14th in value. 

“The aim is to break into the top five and elevate its position in the value chain. While India is poised for a substantial 8 to 10% volume growth, the focus lies on achieving aspirational growth through innovation rather than traditional generics,” he said. 

Shankar Gupta, Chief Sales Officer ACG said, “The pharmaceutical industry in India is experiencing remarkable growth, being the third largest producer by volume and 14th largest by value. However, we strive to further expand our presence and increase the value of our products. Going global is crucial for this endeavour,” he added. 

Highlighting the importance of technology, Jayesh Ranjan, IAS, Principal Secretary, Industries & Commerce Department, Government of Telangana in the statement said, “The pharmaceutical, biotechnology, and medical devices industry in Telangana has experienced remarkable growth, surpassing initial expectations.”

“Initially projected to reach $100 billion in 10 years, the industry has already reached a substantial size of $80 billion, prompting a revision of the target to $250 billion. This buoyancy reflects the industry’s potential and highlights the need for the sector to showcase advanced and sophisticated technologies, moving beyond bulk manufacturing,” he said. 

Industry insiders said in future pharma sector will leverage robotics and digitalisation to a significantly high degree. These include the use of automated systems, data analytics, and cloud-based architecture.

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