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
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
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%.
Injection
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