India has emerged as a major player in the global pharmaceutical market, solidifying its position as the third largest supplier of medicines to the United States, trailing only Ireland and Switzerland. This significant achievement is a testament to India’s growing prowess in the pharmaceutical sector. According to the Ministry of Commerce data, India’s medicine exports surged to USD 9 billion in 2023, a remarkable increase from USD 7.33 billion in 2022. This substantial growth has propelled India’s market share to 13.1 per cent in 2023, up from 10.08 per cent in the previous year.
In contrast, Ireland, the world’s largest exporter of pharmaceuticals, experienced a decline in its share of the US market, dropping to 13.85 per cent in 2023 from 17.18 per cent in 2022. This dip is attributed to a decrease in their sales, which fell to USD 9.5 billion in 2023 from USD 12.5 billion in 2022. Similarly, Switzerland, the second largest exporter, also saw its share shrink to 13.7 per cent in 2023, down from 17.4 per cent in 2022.
India’s dominance is not limited to the US market. The country has also made significant strides in the Italian market for antibiotics. In 2023, India’s share in this market jumped to 2.12 per cent, a considerable increase from 0.96 per cent in 2022. This growth resulted in India exporting USD 23.34 million worth of antibiotics to Italy in 2023, compared to USD 11.48 million in 2022.
Furthermore, India’s presence in the German market for Magnetic Resonance Imaging (MRI) apparatus is growing steadily. In 2023, India’s export share in Germany climbed to 1.7 per cent, up from a mere 0.45 per cent in 2022. This impressive growth led to India exporting MRI machines worth USD 13.02 million in 2023, compared to USD 2.93 million in 2022.
India is now the sixth largest exporter of MRI apparatus globally, with the UK topping the list with USD 460 million in exports.
An official quoted in the PTI report highlighted the challenges of penetrating the European Union market, stating, “Penetrating the EU market is difficult, and it is important that we have a base coming in. These reflect some efforts which are being put in terms of monitoring various markets and various commodities to see where growth can be pushed.”
The pharmaceutical and medical device manufacturing sectors are prioritized by the Indian government, and they were among the first to receive the Production-Linked Incentive (PLI) scheme, signifying the government’s commitment to fostering these industries.
