India's pharma exports set for 10x growth, targeting $350 billion by 2047

India’s pharmaceutical industry exports are projected to reach $350 billion by 2047 — an estimated 10-15 times increase from the current levels. The nation, already a global leader in generic drug supply, is expected to move up the value chain by focusing on specialty generics, biosimilars, and innovative pharmaceutical products,  According to a new report by Bain & Company in collaboration with Indian pharmaceutical bodies while India currently ranks 11th in pharmaceutical export value, India can secure a position among the top five nations by 2047. The country’s pharma exports are expected 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.  Key to this growth will be India’s transition from a volume-based approach to a value-driven strategy. The report identifies three major areas that will drive this shift, Active Pharmaceutical Ingredients (APIs) exports, currently valued at $5 billion, are projected to reach $80-90 billion by 2047. With China dominating 35 per cent of the outsourced API market, global supply chain diversification efforts — such as the U.S. Biosecure Act — present a major opportunity for India. Strengthening domestic API production, investing in bulk drug parks, and ensuring self-sufficiency in critical raw materials will be critical.  Indian biosimilar exports, presently valued at $0.8 billion, are expected to grow fivefold to $4.2 billion by 2030 and reach $30-35 billion by 2047. Increased research and development investments, regulatory simplifications in key markets like the US, and capacity expansion are expected to boost India’s global standing in biosimilars.  Currently the largest component of India’s pharma exports at $19 billion (70 per cent of total exports), generic formulations are projected to grow to $180-190 billion by 2047. Moving beyond commodity generics, India must enhance its capabilities in specialty generics, which offer higher margins and greater global market potential.  Viranchi Shah, National President of IDMA, highlighted that targeted policy measures are necessary to unlock India’s pharma potential. “India must scale up efforts to strengthen its API industry, address non-tariff barriers for exports, and establish country-specific export strategies,” he stated.  The report also highlights that India supplies 55-60 per cent of UNICEF’s vaccines but must shift focus towards high-value markets through clinical trials and manufacturing investments. With over 40 new chemical and biological entities in development, India’s pharmaceutical exports in innovation could reach $13-15 billion by 2047.  India’s contract development and manufacturing organisations (CDMOs) and contract research organizations (CROs) are poised for growth, driven by supply chain diversification efforts from developed economies.  Industry experts state the importance of government and private sector collaboration to realise India’s pharma export potential. Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA), noted, “The pharmaceutical sector is a major contributor to India’s economy, supporting 2.7 million livelihoods and driving $19 billion in trade surplus. To achieve our 2047 vision, doubling down on pharmaceutical exports is essential.”  Additionally, private equity and venture capital investments in Indian pharma have surged, with healthcare’s share of PE/VC investments rising from 6 per cent in 2021 to 17 per cent in early 2024. Regulatory harmonisation, expansion of production-linked incentives (PLI), and R&D-focused incentives will be key enablers.  Raja Bhanu, Director General of Pharmaceuticals Export Promotion Council of India (Pharmexcil), outlined the vision for India’s pharma sector by 2047: “India’s generics are known for quality, affordability, and scalability. By investing boldly in specialty generics, biosimilars, vaccines, and advanced therapies, we aim to reach the $350 billion export milestone.”