As a whole, India enjoys a prominent position in the global pharmaceutical market, currently ranking 3rd in terms of production volume and 14th in value. Country is the largest exporter of generic drugs and providing over 50% of global demand for various vaccines. This sector is expected to grow at a rate of more than 11% annually.
The pharmaceutical industry of India is also driven by a robust domestic market. In 2021, this market was more than US $40 billion and is likely to reach $65 billion by 2024. It is also anticipated that the market will grow to
That said Gujarat, especially, is one of the top states in the country when it comes to manufacturing and supplying of generic drugs. There is increasing awareness in the state about the alternative to branded drugs. This has led to a 50% growth in sales of generic drugs in the last two years. With Covid-19 pandemic, this awareness has significantly grown.
According to Generic Medicines retailers, most of their sales fall into five categories. One for diabetes, another for cancer, a third for heart disease, a fourth for nutrition, and a fifth for anti-infective drugs.
Gujarat Food and Drug Control Administration (FDCA) Commissioner Dr. H.G. Koshia, the knowledge about generic drugs in the state is constantly increasing. Its sales have increased notably compared to last year. People are shifting to generic medicine, and so people are getting the same quality medicine at a much lower price.
Koshia added that the private and public generic medicine dealers are also broadening their reach in the market. FDCA figures show that the share of generic medicine in the country was barely 3% in 2015-16, which has now risen to 8%.
According to industry statistics, sales of generic drugs in Gujarat in the financial year 2020 were Rs25 crores. It has increased to Rs60 crores in 2022. If growth continues at the same rate, these sales could cross Rs100 crore by 2024.
Industry sources said that a large number of people turned to generic medicine during the Corona period due to shortage of drugs. This has led to increased demand for medicines and a significant reduction in their drug bills. As a result, sales of generic brand drugs have grown by almost 50% in volume and by 65% in terms of value in the last two years. The demand is mainly growing from lower and middle-income group.
