India's Pharma Exports Set to Reach $350 Billion by 2047: Report

India’s pharmaceutical industry is set to experience exponential growth, with exports expected to surge to $350 billion by 2047, marking a remarkable 10-15 times increase from current levels. Already a global leader in the supply of generic drugs, India is now poised to elevate its position in the global pharmaceutical market by focusing on high-value sectors like specialty generics, biosimilars, and innovative pharmaceutical products.

According to a new report by Bain & Company, in collaboration with Indian pharmaceutical bodies, India, which currently ranks 11th in pharmaceutical export value, is projected to secure a position among the top five global exporters by 2047. The country’s pharmaceutical exports are forecasted to grow from approximately $27 billion in 2023 to $65 billion by 2030, before reaching the ambitious $350 billion target by India’s 100th year of independence.

This growth trajectory will be driven by a significant shift from a volume-based approach to a more value-driven strategy. One of the major drivers of this transformation will be India’s growing Active Pharmaceutical Ingredients (API) market. Currently valued at $5 billion, API exports are projected to reach $80-90 billion by 2047. As China dominates around 35% of the outsourced API market, India is well-positioned to capitalize on global supply chain diversification, such as the U.S. Biosecure Act, which creates new opportunities for API production.

Strengthening domestic API manufacturing and ensuring self-sufficiency in critical raw materials will be essential to achieving this target.

In the biosimilars segment, India is also poised for considerable growth. While the current value of India’s biosimilar exports stands at $0.8 billion, it is expected to grow fivefold to $4.2 billion by 2030 and reach $30-35 billion by 2047. To fuel this growth, India will need to make increased investments in research and development, expand production capacities, and leverage regulatory reforms in key markets like the United States.

The bulk of India’s pharmaceutical exports currently come from generic formulations, valued at $19 billion, which account for 70% of total exports. This sector is projected to grow to $180-190 billion by 2047. However, to unlock higher margins and greater global market potential, India will need to focus on developing specialty generics, which offer higher profit margins compared to traditional generic drugs.

Viranchi Shah, National President of the Indian Drug Manufacturers' Association (IDMA), emphasized the need for targeted policy measures to unlock India’s pharmaceutical potential. Strengthening the API industry, addressing non-tariff barriers for exports, and establishing country-specific export strategies are critical to realizing the country’s long-term goals.

India’s pharmaceutical contributions to global health are already substantial. The country supplies 55-60% of UNICEF’s vaccines, and moving forward, India’s focus must shift toward high-value markets. This can be achieved through strategic investments in clinical trials and manufacturing. Additionally, India is developing over 40 new chemical and biological entities, and its pharmaceutical exports in innovation are expected to reach $13-15 billion by 2047.

India’s contract development and manufacturing organizations (CDMOs) and contract research organizations (CROs) are also poised for significant growth, fueled by global supply chain diversification initiatives from developed economies. Experts emphasize the importance of collaboration between the government and private sector to achieve India’s pharmaceutical export potential.

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA), highlighted the crucial role the pharmaceutical sector plays in India’s economy, supporting millions of livelihoods and contributing to a significant trade surplus. To achieve India’s vision for 2047, he emphasized the importance of boosting pharmaceutical exports.

The pharmaceutical sector in India has also seen a surge in private equity and venture capital investments, with healthcare’s share of such investments growing from 6% in 2021 to 17% in early 2024. Regulatory harmonization, along with the expansion of production-linked incentives (PLI) and research and development-focused incentives, will play a key role in enabling this growth.

Raja Bhanu, Director General of the Pharmaceuticals Export Promotion Council of India (Pharmexcil), outlined the vision for India’s pharmaceutical sector by 2047, saying that with bold investments in specialty generics, biosimilars, vaccines, and advanced therapies, India aims to reach the $350 billion export milestone. 

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