Care Ratings: Indian Pharma Industry To Surpass $60B By FY24

According to a report by Care Ratings, the COVID-19 pandemic push and rising export share will lead to an 11% annual growth for the Indian pharma industry over the next two years.

With this growth, the Indian pharma sector will surpass the $60 billion mark, which stood at around $45 billion in FY21. The Indian pharma industry globally ranks third in terms of volume and 13th in terms of value presently.

The report stated,

“The reason for higher rank in terms of volume while lower rank in terms of value is primarily attributed to the predominance of Indian pharma market in the generic segment. The industry has exhibited compound annual growth rate (CAGR) of about 7.2% during FY17-FY21 and registered a growth of about 12% during FY21.”

[Read: Technological And Growth Trends In The Healthtech Industry In India]

The Indian domestic pharma industry exhibited a CAGR of about 4.5% to reach $21 bn during FY21, up from $18 bn during FY17. On the export side, the pharma sector grew from $17 billion during FY17 to reach $24 billion during FY21. Additionally, with better prospects in regulated and semi-regulated markets, the contribution of domestic to exports would widen to 45:55 by FY23.

As per the report, factors like decreasing regulatory risks, the ability to leverage the opportunity available for Indian pharma companies due to the expiry of patent drugs across the globe and the growing trend in PE investments are expected to be the driver of the growth of the pharma industry.

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