Indian pharmaceutical sector at present is around USD 37 billion (INR 2,50,000 crore) turnover with more than 50% of which is exports. The current growth rate of Indian pharma is around 10-12% which had earlier grown at 15% CAGR till a few years back. India is the largest supplier of generic drugs across globe. North America counts for nearly 33% of the exports from India.
The manufacturing and exports of pharmaceuticals include bulk drugs, intermediates, drug formulations, biologicals, herbal, surgical etc. The other sub-sets are regenerative medicine, bio-agriculture, bio-informatics, Clinical Research Services among to others. India is largest producer of recombinant Hepatitis B vaccine across the globe. India is one of the 15 destinations for biotechnology in the globe.
The healthcare is one of top 5 sector in India. The large population, increased life expectancy, increasing health consciousness, changing lifestyle, rise in per capita income are contributing to the ever growing demand for healthcare services in India. Due to best-in-class healthcare at a lower cost the medical tourism industry in India is growing at CAGR of over 20%.
The subsectors of healthcare are diagnostic-labs, hospitals, medical-devices etc. 100% FDI is permitted under the automatic route for the hospital in India. Healthcare sector is innovating and adopting newer technologies like Telemedicine, Digital Twins, AI, Robotics etc.
The current contribution of public spending on healthcare in country’s GDP is 1.15% and expected to grow to 2.5% by 2025 as per Honorable Prime Minister’s speech in year 2018.