The pharmaceutical sector in India has played a crucial role in the world’s pharmaceutical industry. Comparing the position of India on a global scale, India is responsible for the production and supply of many generic medicines. Locally, the Indian market is also dominated by Indian brands providing generic medicines at lower prices. The current global position of India is 3rd when it comes to production & 14th in value. Apart from production, the Indian pharma industry also has a significant role in researching and developing innovative drugs & medicines. With the pharmaceutical industry’s value expected to reach $65 billion by 2024, investing in the industry will be a wise move. With more people indulging in online investing, knowing everything about the industry is prudent before putting your money in it. In this article, we will discuss everything that you need to know about the pharma sector.

1) Cost-Effective

It is already established that the Indian pharma industry provides generic drugs, OTC drugs, vaccines, etc., at a lower cost. This is very advantageous as it allows the low cost of production and boosts more development & research. This allows the industry to experiment and discover new drugs that will benefit the industry in its entirety.

2) Market Size

As we mentioned earlier, the pharma industry has a dominant position in the Indian and Global Market. Our domestic market is also expected to grow by three times in the near future. This also includes biotechnology & biopharmaceuticals that are currently being developed. Today, our pharmaceutical revenue increases by 17% every year.

3) Exporting

Apart from the domestic market, India has also been a critical exporter of generic medicines & pharmaceutical drugs. When it comes to the global position, India’s export is valued at $24 billion & is at the 12th position. India exported drugs, vaccines, and other generic medicines during the Covid outbreak, benefiting India’s position as an exporter.

4) Government Backing

The Government of India has also made certain amendments that have benefited the pharmaceutical industry. With the backing of the government, the pharma industry can thrive. The major development is that the government has allowed FDI up to 100% through the automatic route. Until March 2021, the pharma industry has received $18 billion in FDIs.

5) Dominance of Local Players

There are tons of local pharmaceutical companies that research & produce generic medicines in India. This has put the local players in a dominant position as they know the market structure and trend. This is highly beneficial for the industry as the key players are well-versed & experienced in the market and the business.
The pharma sector is growing at an exponential rate. It is never the wrong time to start investing. Where are some of the industry leaders currently standing as of April 2022:

1. Sun Pharma is at 907 INR
2. Cipla is 966 INR
3. Lupin – 745 INR
4. Aurobindo – 628 INR

Investing in the pharma sector can be a very lucrative prospect with such prices.