The Indian pharmaceutical industry is the world’s third largest in terms of volume and thirteen largest in terms of value. The impact transcends the value chain, with Indian pharmaceutical companies leading in APIs as well as formulations. India’s API industry is ranked the third largest in the world, and the country contributes approximately 57 per cent of APIs to pre-qualified list of the WHO1.
Invest India website, Indian API Industry – Reaching the full potential, KPMG in India, CII report, April 2020, Department of Commerce, Government of India
The recent policy changes and government reforms in the space have positioned India as a preferred market for global investments and establishment of local manufacturing facilities. Apart from allowing a 100 per cent FDI for greenfield and 74 per cent FDI for brownfield projects2 under the automatic route, the government has recently announced establishment of three bulk drug parks and a production linked incentive scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs), drug intermediates and Active Pharmaceutical Ingredients (APIs). In March 2020, the government decided to fast-track clearances for bulk drug production projects in the country to increase domestic production.3
Established ecosystem to support pharma manufacturing
Lower manufacturing cost
Large pool of qualified personnel
Among the fastest and largest growing practices in India
Wide array of services
Guidance note to readers: We have relied on secondary sources which are considered reliable but have not independently verified the data. KPMG shall not be liable and/ or responsible for any reliance placed on the content of the website.