India's pharmaceutical industry is now the third largest in the world in terms of volume and accounts for 10 per cent of the world’s production. According to Mr.Srikant Kumar Jena, Minister of State for Chemicals and Fertilisers, the Indian pharmaceutical industry is now over US$ 20 billion.

India ranks fourteenth in terms of value. The country ranks fourth in terms of generic production and seventeenth in terms of export value of bulk actives and dosage forms, according to Mr Jena.

The Indian pharmaceutical offshoring industry is slated to become a US$ 2.5 billion opportunity by 2012, thanks to lower R&D costs and a high-talent pool in India.

The domestic pharma market will outshine the global market, growing at a compounded annual rate of 12-15 per cent as against a global average of 4-7 per cent during 2008-2013, according to a study by market research firm IMS. The Indian biotech sector’s overall turnover in 2008-09 was US$ 2.51 billion, as compared to US$ 2.13 billion in 2007-08. Bio-pharma contributed US$ 1.6 billion; bio-agri nearly US$ 311.28 million, bio-industrial segment US$ 99.19 million and bio-informatics grew 15 per cent to touch US$ 45.65 million.

According to a report by the Confederation of Indian Industry (CII) and consultancy firm KPMG, the Indian biotechnology sector is likely to become a US$ 5 billion industry by 2010.

Smith Clinton Expertise