India's pharma sector set for 9.6% CAGR, reaching $55 bn by 2030: Report

Key segments contributing to the growth of India's pharma sector will be patented drugs, branded generics, and trade generics, according to a report by Pharmarack Technologies

The Indian pharmaceutical industry is projected to reach Rs 4.6 trillion ($55 billion) by 2030, according to a report from Pharmarack Technologies, a digital supply chain solutions and market intelligence platform.

The report, cited in a Business Today article, states that the sector, valued at approximately Rs 2.42 trillion ($29 billion) in 2023, will witness a compound annual growth rate (CAGR) of 9.6 per cent. This growth has been attributed to new regulatory measures and technological advancements.

India's pharma sector: Where will the growth come from?

According to the report, the key segments contributing to the growth of India's pharma sector will be patented drugs, branded generics, and trade generics. Patented drugs, which currently hold a smaller market share, are expected to grow to Rs 15,500 crore by 2030. Branded generics, comprising 87 per cent of the market, were valued at Rs 2.1 trillion in 2023 and are projected to reach Rs 3.71 trillion by 2030.

Moreover, trade generics, with a 10 per cent market share, are forecast to expand from Rs 24,000 crore to Rs 68,000 crore by 2030. Additionally, the generic generics segment, targeting underserved populations through initiatives such as Jan Aushadhi stores, is expected to increase from 0.5 per cent to 1.1 per cent of the market by 2030.

The distribution sector is also evolving, with a rise in organised stockists enhancing drug delivery efficiency, according to the report. It further noted that regulatory changes are set to impact the industry.

India's pharma sector: Tech disruptions

Technological innovations are shaping the sector. Internet of Things (IoT) sensors, Radio-Frequency Identification (RFID), and Software-as-a-Service (SaaS) platforms are expected to enhance supply chain efficiencies and quality control. Track-and-trace systems, including QR codes and barcodes, are being implemented to combat counterfeit drugs. Additionally, virtual and augmented reality tools are being used to train quality control professionals.

“As the pharmaceutical sector evolves, empowering pharmacists, optimising distribution networks, and leveraging technology are crucial for creating a transparent supply chain. Our goal is to ensure that affordable medicines are accessible throughout the country,” said Dhruv Gulati, CEO of Pharmarack Technologies.