How India’s G20 Presidency Can Help the Pharmaceutical Industry?

06 September 2023

The Covid-19 pandemic in 2022 brought an unexpected boon for India’s pharmaceutical industry. According to a report, India’s pharma exports were at USD 16,264 million in 2019 which rose to USD 18,426 million in 2022. The sector further saw a positive growth in 2021 and 2022. Now India’s G20 presidency will further push the market upwards. How? Let’s try to find and analyze the crucial stats of India’s pharmaceutical industry.

According to a report, the foreign direct investment (FDI) of India’s pharma industry shot up by 188% to USD 1.5 billion in 2020-21 from USD 517 million in 2019-20. The FDI came into India’s manufacturing prowess in vaccines. The next year, FDI slipped by 5% but surged by 46% in 2022-23. Market experts believe that India’s presidency of the G20 summit will reaffirm its position as a leading player in healthcare and pharmaceuticals.

G20 Expectations for Pharma Industry

        ·         During India’s G20 presidency, PM Modi has driven ambitious healthcare agenda.

        ·         G20 healthcare priorities are pharma partnership & healthcare emergencies.

        ·         The G20 presidency also elevates India’s role as a global pharmaceutical hub.

        ·         The spotlight falls on medical tourism and healthcare digitalization.

        ·         G20 countries are working together to shape global health solutions..

According to the Indian government’s Economic Survey for 2022-23, the domestic pharmaceuticals market is expected to grow to $130 billion by 2030.

India’s Pharma Exports Before and After Covid-19 – Year-wise Analysis

The Indian pharma sector is the world’s largest provider of generic drugs, with 20% of global exports in terms of value. India’s pharma exports totaled USD 14,330 million in 2018 which rose to USD 19,752 million in 2022. See the chart below to get data visualization.

India’s Top Export Destinations of Pharmaceutical Products 2022

India’s top export destination of pharmaceutical products is the United States of America which shared 34% of the total value of shipments in 2022. During the Covid-19 pandemic in 2020, India exported drugs to the U.S. as the virus was spreading rapidly among Americans, and in 2021, India supplied vaccines to the country as well. That is why, India’s exports of pharmaceutical products were higher than in previous years. Here is a list of India’s top 10 export destinations of pharmaceutical products.

The G20 summit acts as a platform that brings like-minded people and stakeholders together to discuss potential opportunities for international collaborations for an effective global healthcare ecosystem. According to a report, the healthcare sector in India has over $33 billion as FDI from April 2000 to March 2023. In this sector, drugs and pharmaceuticals grabbed the biggest share.