Often hailed as the ‘pharmacy of the world,’ the Indian pharmaceutical industry is booming. It jumped from $40 billion in 2021 to an expected $130 billion in 2030, with projection hitting Beyond just keeping up with the demand at home, the Indian pharma industry commands over 20% of the global pharma supply chain and addresses approximately 60% of the worldwide demand for vaccines. It meets 40% of the generic demand in the US and provide the hitter It has undergone a remarkable transformation, evolving into a dynamic powerhouse driving healthcare advancements worldwide. Interestingly, India is the biggest contributor to UNESCO, with a share of over 50-60%. Plus, it boasts of the highest number of USFDA-approved plants outside the U.S.
The industry benefits from cost competitiveness, driven by factors such as lower labor costs, economies of scale, and efficient manufacturing processes. This cost advantage enables Indian pharmaceutical firms to provide competitively priced products both domestically and globally. The extensive scale and diversity of the Indian pharma industry offer resilience and adaptability to the demands of supply chain, enabling it to cater to diverse needs and maneuver through market fluctuations effectively. Such a widespread presence on the global stage underscores the importance of robust supply chain networks capable of meeting stringent regulatory mandates, ensuring high-quality standards, and overcoming logistical hurdles.
A global force driving healthcare solutions
The pharmaceutical supply chain in India has undergone significant transformation, spurred by globalization, technological advancements, regulatory shifts, and rising healthcare product demand. The focus has shifted from manual and transactional processes to automation and strategic innovation.
In recent years, geopolitical tensions and the COVID-19 pandemic have also highlighted the importance of supply chain resilience and diversification. As a result, there has been growing interest in the China+1 strategy, where companies seek to diversify their supply chains by investing in alternative manufacturing locations, including India. At a recently conducted panel discussion, titled ‘From Manufacturing to Patient: Ensuring Seamless Pharma Supply Chains in India’, the overreliance on a single supplier, especially in the case of active pharmaceutical ingredients (APIs) from China, was identified as a significant threat.
Following the Covid-19 pandemic, pharmaceutical supply chains have evolved to become more agile, transparent, and resilient. They have embraced advanced technologies like machine learning and artificial intelligence. There is a significant ongoing investment in automating manufacturing and packaging processes to enhance productivity, operational cost efficiency, and labeling precision. This transformation has enabled the implementation of on-demand delivery models, employing strategies like direct-to-patient approaches and B2B eCommerce platforms.
