Lok Sabha Question No. 1268 (UNSTARRED), answered on 2024-02-09
Subject: Export of Pharmaceutical Products
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Chandra Sekhar Sahu, Pritam Gopinath Munde, Rahul Ramesh Shewale

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION No. 1268

TO BE ANSWERED ON THE 9 th  FEBURARY, 2024

## Export of Pharmaceutical Products

## 1268.   SHRI CHANDRA SEKHAR SAHU: DR. PRITAM GOPINATHRAO MUNDE: SHRI RAHUL RAMESH SHEWALE:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a)  whether  the  pharmaceutical  industry  in  the  country  is  significantly  contributing  to healthcare globally;
- (b)  if  so,  the  details  thereof  along  with  the  current  size  of  Indian  pharmaceutical  industry particularly of industries in Odisha;
- (c) whether the country continues to play a substantial role in manufacturing various important, high quality and cost-efficient medicines for Indian and global markets;
- (d)  if  so,  the  details  thereof  along  with  the  medicines  and  equipment  exported  by  the Pharmaceutical Industries during the last two years and the current year so far, year-wise;
- (e) the details of growth of export of pharmaceutical products during the last nine years, yearwise; and
- (f) the steps taken/proposed to be taken by the Government to make Pharmaceutical Industries competitive globally and to achieve the export target?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI BHAGWANTH KHUBA)

- (a):       Indian pharmaceutical industry has significantly contributed to healthcare globally in terms of providing access to affordable medicines and saving healthcare expenditure for many countries.  Indian  pharma  industry,  also  known  as  the  "pharmacy  of  the  world",  plays  an important  role  in  improving  public  health  outcomes  in  India  and  globally.  Over  the  years, Indian Pharmaceutical Industry has become a leader in the manufacture of high quality generic drugs at competitive prices and plays a pivotal role in providing affordable medicines globally. The exports of pharmaceuticals for the year 2022-2023 stood at Rs. 1,94,254 crores. According to industry estimates, India ranks 3rd worldwide for the production of Drugs and Pharmaceuticals  by  volume  exporting  to  around  200  countries/territories.  The  Indian pharmaceutical industry supplies 62 percent of the global demand for vaccines and is a leading supplier of DPT, BCG and Measles vaccines. 70% of WHO's vaccines (as per the essential Immunization schedule) are sourced from India.
- (b):       The Indian pharmaceutical industry is the world's 14th largest in terms of value. The pharmaceutical  industry  in  India  is  currently  valued  at  $50  Bn  (2021-22).  The  size  of Pharmaceutical Industry in Odisha is not available.

(c) & (d)     Yes, India continues to play a substantial role in manufacturing various important, high quality and  cost-efficient medicines  for Indian and  global markets. Details of pharmaceutical products and equipment exported to various countries during last two years and the current year is as under:

(Rs. in crore)

| Description                    |   2021-22 |   2022-23 |   2023-24 (upto |
|--------------------------------|-----------|-----------|-----------------|
| Drug Formulations, Biologicals |  141634   |  156401   |        115838   |
| Medical Devices                |   20427.3 |   27270.4 |         20373.4 |

- (e):       The details of growth of export of pharmaceutical products during the last nine years are as under: -
- (f):       The Government strives to minimize country's dependence on imports and to give fillip to indigenous manufacturing. The Govt. also strives to promote the Pharmaceutical industry so as to enable greater investment in the sector and product diversification to high value goods. The Department of Pharmaceuticals is implementing the following three schemes:

| Financial Year   | Value (Rs. in crore)   | Growth rate (%)   |
|------------------|------------------------|-------------------|
| 2014-15          | 68,557.75              | -                 |
| 2015-16          | 82,760.25              | 20.7              |
| 2016-17          | 84,934.89              | 2.6               |
| 2017-18          | 83,213.97              | -2.0              |
| 2018-19          | 1,00,681.60            | 21.0              |
| 2019-20          | 1,13,003.65            | 12.2              |
| 2020-21          | 1,41,207.04            | 25.0              |
| 2021-22          | 1,41,634.12            | 0.3               |
| 2022-23          | 1,56,401.43            | 10.4              |

(i) Production  Linked  Incentive  (PLI)  scheme  for  promotion  of  domestic manufacturing  of  critical  Key  Starting  Materials  (KSMs)/  Drug  Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India (PLI BD)- The tenure of the scheme is from FY 2020-2021 to 2029-30 with total financial outlay of ₹6,940 crores. The scheme provides for financial incentive on sales of 41 identified products for  six  (6)  years.  48  projects  have  been  approved  under the scheme and investment worth Rs 3,630 crore has already been realized. 27 Projects have been commissioned so far and production capacity for 41,881 MT has already been installed. Total exports registered by PLI BD applicants under the Scheme as on September, 2023 is about Rs.252.62 crore.

(ii) Production Linked Incentive scheme for pharmaceuticals - The total financial outlay of the scheme is Rs. 15,000 crore and the tenure of the scheme is from FY 20202021 to 2028-29. The scheme provides incentives for a period of 6 years on sales of approved products under three (3) Product Categories covering Bio-pharmaceuticals, Complex  generic  drugs,  Cell  based  or  gene  therapy  drugs,  Orphan  drugs,  Phytopharmaceuticals,  Patented  drugs  or  drugs  nearing  patent  expiry,  etc.  Total  exports registered by PLI Pharma applicants under the Scheme, as of September, 2023 is about Rs. 73,025 crore.

(iii)      The  scheme  for  Promotion  of  Bulk  Drug  Parks  has  been  started  with  the objective of providing easy access to Common Infrastructure Facilities (CIF) to bulk drug units located in the park, in order to significantly bring down the manufacturing cost of bulk drugs. The scheme has a financial outlay of Rs. 3,000 crores and the tenure is from FY 2020-2021 to FY 2024-25. The scheme provides for financial assistance to three States for establishing bulk drug parks. The Department had received proposals from 13 States. After evaluation of the proposals as per prescribed criteria, approval was accorded to the proposal of setting up bulk drug parks in the states of Andhra Pradesh, Gujarat and Himachal Pradesh.

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