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Indian Pharmaceutical Industry Witnesses 202% Growth in FDI Inflow over 2 Years: Mansukh Mandaviya

    28 April , 2022         Fdiindia

Indian Pharmaceutical Industry Witnesses 202% Growth in FDI Inflow over 2 Years: Mansukh Mandaviya

Union Minister for Health and Family Welfare, Mansukh Mandaviya, has stated that the pharmaceutical industry has indeed emerged as a favorite destination for foreign investors. The coronavirus pandemic has further propelled the growth of the pharma sector in the country in recent years. The US-China trade tensions and the aftermath of the covid pandemic have created an enormous opportunity for India's pharma industry, and within this, many US companies are now keen to partner with local Indian companies to generate higher profits from emerging markets like India.

"Indian pharmaceutical sector under PM @NarendraModi Ji's leadership has emerged as a favorite destination for foreign investors," Mansukh Mandaviya tweeted.

He further added that India's pharma sector witnessed unprecedented growth of 202%

"Despite #Covid19, FDI inflows in India's pharmaceutical sector witnessed unprecedented growth of 202%," read his tweet.

Addressing the 'Indian Pharma - Global Health Care' event to commemorate the Diamond Jubilee of the Indian Drug Manufacturers' Association (IDMA) in Mumbai, Union Health Minister Shri J P Nadda stressed how government initiatives such as Production Linked Incentive Scheme have been beneficial for the pharma sector.

"Through the Policy on Production Linked Incentives, launched in 2010, the government is encouraging domestic manufacturing of pharmaceutical products. Under this scheme, 35 drugs have been identified for promotion of domestic production through competitive bidding," he added.

"The extraordinary growth of foreign investments in the pharma sector is mainly on account of investments to meet COVID-19 related demands for therapeutic and vaccine developmental needs," as stated in the Economic Survey.

While the Indian pharmaceutical industry ranks third in terms of production volume, the Survey stated that exports amounted to USD 24.4 billion instead of total imports valued at USD 7 billion, generating a trade surplus of USD 17.4 billion.

"Global medicine manufacturing will see an explosion in exports over the coming year. Currently India consumes approximately 20% of all medicines on the global market. This number is expected to increase substantially as demand outpaces domestic supply and companies look to cater to world markets."

"India supplies 20% of the world's generic medicines, the largest supplier in the business, according to the Survey for 2021-22."


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