Caspar van Kempen

Posted on February 21, 2018

Why Is India Such a Large Pharma Country?

There are many reasons behind India’s large and continuously rising pharmaceutical stature. India offers affordable APIs for export to widespread areas of the world. But the price is not the only reason. 


In modern times, people are able to live more active and healthier life by the virtue of medical advancement and pharmaceutical development. Perhaps, the pharmaceutical industry is one of the biggest industries in the world. For this industry, India has contributed considerably in meeting the demands and has become a prime pharmaceutical provider during the recent years with swift developing generics and biosimilar trade all around the world. [1] India contributes around 20% by volume of the total universal generic drug trade and is presently at the 4th position among the biggest generic pharmaceutical manufacturers throughout the world. The percentage is expected to rise further in the coming years.

India excels China in all principal markets including the United States, European Union, and Africa.


Reasons Behind India’s Vast Progress in Pharmaceutical Industry:

There are many reasons behind India’s large and continuously rising pharmaceutical stature.
In contrast to costly products supplied by the Multinational Companies, India offers affordable generic drugs for export to widespread areas of the world.

Pharmaceutical raw materials, especially of good quality, are not available readily. There are not many vendors that link the demand and supply of these materials. India is a major provider of high-quality Active Pharmaceutical Ingredients (APIs). These high-quality Indian APIs are of low-cost and are not taken as a threat to the pharmaceutical industry, which was badly hurt by the entry of large-scale Chinese manufactured products which were relatively costlier. India’s cost of production has proven to be a leading source of its Industry’s strength as the drug products are 50% cheaper than Europe and 60% cheaper than the United States in terms of market price.

Indian pharmaceutical companies have also set up their production plants in Mexico, Argentina and Brazil that besides supplying to the local areas, also export to countries outside the region. [2]

India also has a skilled labor force as well as high administrative & scientific capabilities in comparison to its peers in other countries. [3] Its pharmaceutical industry has a firm support of the Government which is also a key reason for its vast growth.

Innovation, Research and Development are one of the most important areas where the focus of any Pharmaceutical industry should be. India’s generic drug manufacturers are steadily working on these aspects which has bode quite well for their industry’s outcome and has made India a leader in the competition with similar developing countries.


Weaknesses That Need to be Addressed:

On the other hand, as the results of several researchers have revealed, even though India is currently the seedbed for worldwide pharmaceutical production, yet it plays much less significant part as compared to the developed countries, especially in the high-end zones, for example, the special drug formulations, production of the Active Pharmaceutical Ingredients (APIs) and completed drugs that are still under patent protection, etc. [4] This state is primarily directed by the deep-rooted weaknesses of the country. Which is, though, imagined to still persist in the near future. Few Indian companies, including Ranbaxy, have also been detected and fined for their products banned by the FDA of the United States and its counterpart EU for breaching quality manufacturing standards. [5] Also, there is a shortfall of qualified scientists for pharmaceutical research and development line.


The Bottom Line:

The reach of the Indian pharmaceutical industry is expansive and is one of the highly organized sectors. It plays an important part in sustaining advancement in the field of global medicine. By 2025, the pharmaceutical market value is predicted to grow to USD 100 billion directed by fast urbanization, increasing buyer spending and raising healthcare insurance.

Pharma industry is thriving every day with the increasing demand of drugs. However, unlike other industries, there are not many vendors the link the supply and demand of APIs. It is particularly harder for small companies to obtain good quality materials at reasonable rates. To address these issues, provides an online portal to ensure the easy availability of pharmaceutical raw materials not only to the large companies but to the small ones also.



Pharmaoffer is an online marketplace for pharmaceutical raw materials. All content provided on this blog is for informational purposes only. This blog contains my opinion and doesn’t reflect the opinions of any organizations you might be affiliated with. The information in this blog is accurate and true to the best of my knowledge, but that there may be omissions, errors or mistakes.


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