The Indian pharmaceutical industry, which has made phenomenal progress in recent years, is expected to maintain an annual average growth of about 15-20 percent in the period between 2005 and 2010. Pharmaceutical exports touched $4.7 billion in 2005-06. According to the Economic Survey 2006-07, the value of pharmaceutical output had grown to $12.4 billion in 2005-06 from a mere $1.1 billion in 1990.
Following are the highlights of the Economic Survey 2006-07, released in February 2007, ahead of the presentation of the Union Budget for the year 2007-08.
- Share of global sales: Value 1%, Volume 8%
- Global ranking: 4th in volume, 13th in value
- Domestic market: $ US 4.5 billion
Growth Rate: 9.5% (expected to grow at an average annual rate 15-20% during 2005-2010)
- Exports: $4.7 billion in 2 005-06 (40% of the Production – 55% formulations and 45 % bulk drugs)
Export Value: 17th in terms of export value of bulk actives and dosage
- Imports: $985 million
- Bulk drug production: $2.1 billion
- Employment: 5 million direct, 24 million indirect.
- Capital investment: $1.2 billion
R&D expenditure of 50 major companies: $495.19 million (growing at a rate of 26 %)
Indian Pharmaceutical produce: 22% of world generic drugs (in term of value)
- News products: 12% of overall market growth (since 2005)
Production costs: Among the lowest in the world, estimated to be 70% less than the West.
- Foreign company: 34 app. (15 of the 20 largest pharmaceutical companies in the world)
Foreign Direct Investment: $172 million (2005-06)
- Contract Research: 1.5% (In 10-15 years 30% of the world clinical research will be conducted)
Contract research and manufacturing services (CRAMS):
- 2005 -$533 million ( 7% of total CRAMS market)
- By 2010 – estimated to touch $30 billion (15% of total CRAMS market)
Clinical Trial Market : $200 million in 2007 ( expected to increase $1 billion by 2010).
Drug Master Filings (DMFs): one fourth of the generic drugs approvals in US
Abbreviated new drug application (ANDA): 23.11% (i.e. 43 of 186 since Dec 2006)
Patent Protected Drugs to go off patent 2012: $80 billion