The Indian pharmaceutical industry is highly regulated. The Government
controls prices of a large number of bulk drugs and formulations. Profit
margins of players vary widely in both domestic and export sales due to many
factors.
Domestic Trade of India Pharma Industry
More than 85% of the
formulations produced in the country are sold in the domestic market. India
is largely self-sufficient in case of formulations. Some life saving, new
generation under-patent formulations continue to be imported, especially by
MNCs, which then market them in India. Overall, the size of the domestic
formulations market is around Rs160bn and it is growing at 10% p.a.
Exports of Indian Pharmaceuticals
Over 60% of India’s bulk
drug production is exported. The balance is sold locally to other
formulators. India’s pharmaceutical exports are to the tune of Rs87bn,
of which formulations contribute nearly 55% and the rest 45% comes from bulk
drugs. In financial year 200, exports grew by 21%. India’s
pharmaceuticals imports were to the tune of Rs20.3bn in FY2001. Imports have
registered a CAGR of only 2% in the past 5 years. Import of bulk drugs have
slowed down in the recent years.
The exports of Pharmaceuticals during the year 1998-97 were Rs 49780
million. From a meager Rs 46 crores worth of Pharmaceuticals, Drugs and Fine
Chemicals exports in 1980-81, pharmaceutical exports has risen to
approximately Rs 6152 Crores (Prov.1998-99), a rise of 11.91% against the
last year exports. Amongst the total exports of India, the percentage share
of Drugs, Pharmaceuticals and Fine Chemicals during April-October
(2000-2001) was 4.1%, an increase of 7%.