India introduces pharmaceutical industry' opportunities to potential Vietnamese investors

According to the Agency, India is among the top 10 pharmaceutical exporting countries with its share of the global market on the rise compared to the previous 5 years.

The Indian Pharmaceutical industry is currently ranked 3rd in pharmaceutical production by volume after evolving over time into a thriving industry growing at a CAGR of 9.43% since the past nine years.

Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK. The domestic pharmaceutical industry includes a network of 3,000 drug companies and around 10,500 manufacturing units.

India’s domestic pharmaceutical market stood at US$ 42 billion in 2021 and is likely to reach US$ 65 billion by 2024 and further expand to reach US$ 120-130 billion by 2030.

The Indian biotechnology industry was valued at US$ 70.2 billion in 2020 and is expected to reach US$ 150 billion by 2025. India’s medical devices market stood at US$ 10.36 billion in FY20.

India is the world's largest supplier of generic medications, accounting for 20% of the worldwide supply by volume and supplying about 60% of the global vaccination demand. The Indian pharmaceutical sector is worth US$ 42 billion worldwide.

Major states for pharmaceutical sector are Karnataka, Maharashtra, Gujarat, Uttar Pradesh, Delhi NCR, Tamil Nadu, Telangana.

India is the 12th largest exporter of medical goods in the world. Indian drugs are exported to more than 200 countries in the world, with the US being the key market. Generic drugs account for 20% of the global export in terms of volume, making the country the largest provider of generic medicines globally.

100% of FDI in the pharmaceutical sector is allowed under the automatic route for greenfield pharmaceuticals. 74% of FDI is allowed under the automatic route and thereafter through the government approval route. $21.22 billion FDI inflows in Drugs & Pharmaceuticals (April 2000 – December 2022); 3.39% Share of total FDI inflows in Drugs & Pharmaceuticals sector (April 2000 – December 2022).

Major investors include Mylan, Pfizer, Dr. Reddy's Laboratories, Johnson & Johnson, and AstraZeneca.

The statistic from Invest India indicates that, Vietnam ranks 101 in FDI inflows into India (USD5.45 Bn of total FDI from Vietnam to India, from April 2000 to December 2022). Vietnam’s share of total FDI Equity inflows to India is 0.0009% (April 2000 - December 2022).

Exponential growth in India-Vietnam trade and economic relations from USD 200 million in 1999-2000 to USD 14.1 billion in 2021-2022.

Vietnam is the 15th largest trading partner globally for India (in FY 2020-21). In ASEAN, Vietnam is the 4th largest trading partner for India (FY 2020-21).