Role of Indian Pharmaceutical Companies



6The Indian pharmaceutical industry plays an undeniably important role in Good Distribution Practices (GDP). Contract research, production or manufacture, clinical trials, research and development of drugs and vaccines are the core competencies of the Indian pharmaceutical industry. The growth of the Indian pharma sector is further helped by multinational pharmaceutical companies which outsource these research activities. The Indian Pharmaceutical Industry, therefore, is on the threshold of a bright future.

Indian pharmaceutical companies and GDP:

The Indian Pharmaceutical Industry is believed to be one of the world’s largest industries involved in the manufacture and export of drugs. Statistics reveal that the India pharma industry is ranked 4th in the world owing to the huge sales volume. It is currently worth 6 billion US$. The Indian pharma industry is fast growing at an accelerated rate of about 13% per year. In addition, the domestic demand (around 70%) for bulk drugs is satisfied by Indian pharmaceutical companies. It is also solely responsible for the production of about 20% to 24% of the generic drugs available globally. The distinction of being regarded as one among the biggest producers of active pharmaceutical ingredients (API) in the global market belongs to the Indian pharmaceutical industry. The country’s leading science-based industries belong to the pharma sector. The Indian pharmaceutical sector possesses the capability and technology which is necessary for the manufacture of complex drugs. Export of about 40% of the entire pharma products is carried out by India to the global market. Formulations account for about 55% of the total exported drugs whereas 45% comprises of bulk drugs. The Indian Pharma Industry comprises of companies which may be small-scale, medium-scale or large-scale.

Growth of the Indian Pharmaceutical Industry:

bgThe Indian pharma industry is believed to be capable of generating revenue worth 20 billion US$ by 2015, taking the present rate of growth into consideration. India is expected to occupy one of the top ten slots among global pharma-based sectors in the near future owing to increase in sale of patent drugs. Improvements in medical infrastructure are expected to bring about a transformation of health services and further fuel the growth of the Indian pharma industry. Biotechnology is the newest entrant into the pharmaceutical industry in India and is capable of helping India enter into the domestic and international investment arena. India is an emerging market which is preferred by the United Kingdom Trade & Investment, due to the recent developments in the biotechnology sector in India, indicating huge business prospects for the UK Biotechnology & Pharmaceutical sector. Attracting foreign direct investments have become easier due to the increase in the number of multinational corporations being established in India. Most of the issues with respect to protection of patents and intellectual property rights are resolved. India complies with the Trade Related Intellectual Property Rights Act (TRIPS). India possesses a commendable infrastructure with respect to data-processing for biostatistics and bioinformatics, as well as huge facilities for manufacture of human generic drugs at a large scale. The current scenario regarding the pharma sector in India proves to be very encouraging for foreign direct investment.

The Role played by Pharmaceutical industries:

pharmaIndia is fast becoming one of the most sought after destinations for conducting clinical trials and the Indian pharmaceutical industry consequently, is emerging to be an international center for setting up contract research and manufacturing services (CRAMS). Quality conforming to international standards and cost effectiveness are factors which promote the success of CRAMS. India possesses the distinction of owning the most number of manufacturing units outside the US which conforms to US Food and Drug Administration (USFDA) guidelines

All these favorable factors succeed in bringing India onto the threshold of becoming the largest global manufacturer of drugs. The Indian pharmaceutical industry has proved to be the most organized industrial sector in Indian economy.

The pharmaceutical industry meets about 70% of the needs of the Indian population for bulk drugs, formulations, injection medicines, capsules and tablets. India provides a talented work force which is skilled and capable of speaking in English, a strong legal framework and stable financial market which attracts foreign investors and thereby promotes Indian economy. Cipla and Ranbaxy were the leading companies in the pharma sector in the year 2010.

Advantages possessed by India:

The biggest advantage offered by India in the field of pharma is its cost effectiveness. The cost of labor, the cost of manufacture and inventory is comparatively lower than that of other countries. Consequently, investing multinational companies can minimize expenses by about 30% to 50%. The cost incurred while performing clinical trials is one tenth of the expense borne by the US for the same. Similarly, the entire expense incurred in carrying out the research in India is one eighth of that in the US. India is one of the highly favored destinations for collaborated R&D, contract research, bioinformatics, and clinical research trials due to the increasing compliance with international regulatory standards such as Good Laboratory Practices (GLP), Good Clinical Practices (GCP) and current Good Manufacturing Practice (cGMP).


The performance of the Indian pharmaceutical industry is very important to the Indian economy. It is capable of generating high sales revenue in domestic as well as global markets. It also succeeds in attracting foreign investors. Therefore, India is becoming one of the most sought after destinations for clinical trials and the Indian pharmaceutical industry consequently is emerging to be an international center for setting up contract research and manufacturing services. Certain notable advantages that Indian pharma companies provide when compared to international pharma companies include management of clinical data obtained after carrying out trials, discovery of drugs and low manufacturing cost. The Indian Pharma industry proves to be highly lucrative and provides maximum scope for growth. All these factors encourage the government to take the initiative to support the pharmaceutical industry in India. Increasing investment further gives a boost to the development of the Indian pharmaceutical industry. Several new tie-ups and mergers both in the domestic and international arena promise an exciting future for the Indian pharmaceutical industry.

  1. lina sadekarlina sadekar03-26-2013

    very informative article

  2. Are Indian Pharmaceutical Companies allowing Project Managers to let the Flooring Companies to use car body filler in the critical corners of Clean Rooms ISO14644-4E1.4.

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