India's Leading Healthcare & Pharma Companies 2023

India’s Leading Healthcare & Pharma Companies 2023 | 19 [ OVERVIEW OF INDIA PHARMACEUTICALS SECTOR ] appeal of Indian pharmaceuticals in the global market. Around 500 API manufacturers contribute to nearly 8% of the global API industry. PHARMACEUTICAL SPENDS AS % OF GDP: INDIA’S POSITIONING VIS-À-VIS GLOBAL PEERS Pharmaceutical spending covers expendi ture on prescr ipt ion medicines and self-medication, often referred as over-the-counter products. According to the IMF, pharmaceutical spends accounted for 0.7% of India’s GDP in 2022. The pharma spends as percentage of GDP is lower than developed markets, however comparable to China. Indian pharma GVA (in INR bn) Source: Department of Pharmaceuticals Pharma spends as a % of GDP (2022) Source: International Monetary Fund INDIAN PHARMA INDUSTRY GROSS VALUE ADDITION On domestic turf, the industry has been emerging as a significant contributor to the growth of the country’s economy. The industry grew at a healthy rate over the last five years and contributed to nearly 1.3% of the Gross Value Added for Indian economy for FY22. The total annual turnover of the industry during FY22 was INR 3,441 bn. Between FY18 to FY22, industry grew at 11% CAGR. In terms of exports, the domestic industry constitutes a major component of the country’s foreign trade, logging consistent trade surplus between FY20 to FY22. Dun & Bradstreet