How India Is Powering Global Access to Affordable Medicines

India is a key exporter to the world for various products. One such product is 'medicines.' How solid is India's medicine export? The answer is reflected in the fact that India is often called 'the pharmacy of the world.' From the USA to Nigeria, the world is dependent on India for a variety of pharmaceutical products.

Key advantages of affordable medicines from India are affordability, reliability, effectiveness, and accessibility. From infectious diseases to chronic conditions, the Indian pharmaceutical industry is addressing health issues faced by the entire world by exporting affordable medicines from India.

The world is interested in Indian pharmaceutical exports especially for the fact that Indian medicines cost only a fraction of their counterparts from the developed countries. Hence, when it comes to affordability, Indian generic medicines are miles ahead of the competition.

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The Backbone of Generic Medicines

Generic medicines dominate India's total medicinal exports. India is an important supplier of generic medicines and accounts for 20% of global generic medicine exports by volume.

In 2024, Indian pharmaceutical exports reached $27.8 billion. In India medicine export, the generic medicines had a share of 70% of these exports. These generic medicines work as cost-effective alternatives and are priced at 10-20% of branded drugs. Hence, medicine courier from India to Singapore and other countries are quite popular.

This incredible pricing makes life-saving treatments accessible to low- and middle-income countries through international medicine courier. Let us consider antiretroviral drugs (ARVs) for HIV/AIDS as an example.India 80% of the world’s total supplies of these drugs come from India and it enables 27 million people globally to access treatment.

Why are Indian generic medicines so affordable? Three factors contribute heavily to affecting the pricing of Indian drugs. Low production costs is the first reason. Due to this, the capital required to produce drugs is minimal. Secondly, there is no dearth of skilled workforce, which means companies can easily find the right people to get the job done. Thirdly, India has a favorable policy environment boosting drug production. This has increased the demand to send medicines to Australia from India.

The Indian Patents Act of 1970 made it possible to process patents but exempted product patents till 2005. The act allowed domestic companies to reverse-engineer drugs and produce generics at scale. The adoption of stricter patent laws under the WTO’s TRIPS agreement hasn't deterred Indian companies, as they have balanced innovation with access.

For this purpose they have used mechanisms like compulsory licensing to produce affordable versions of patented drugs.

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Serving Global Health Needs

India’s medicines form the core of global health programs. 70% of vaccines for the World Health Organization’s (WHO) immunization programs come from India. It includes 50% of the world’s measles and DTP (diphtheria, tetanus, pertussis) vaccines.

During the COVID-19 pandemic, India exported over 66 million doses of vaccines to 95 countries under the COVAX initiative.

Cheap medicines from India cover a wide range of issues going beyond vaccines. Indian drugs are used heavily in Africa to curb the menace of malaria, tuberculosis, and non-communicable diseases like diabetes and hypertension.

Indian-made antimalarial drugs cost as little as $0.50 per course, compared to $5-$10 for branded versions. If we look at the larger picture, then the numbers indicate a big win for Indian companies. This is the reason for the huge demand formedicine courier services from India to Australia.

In the United States, Indian generics saved the healthcare system $337 billion in 2023, highlighting the dependence the world's biggest countries have on Indian drugs.

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Government Support and Industry Innovation

India’s government has taken important steps to create a supportive and fruitful environment for growth of India pharma industry. As a part of this support, the government of India launched schemes such as Production Linked Incentive (PLI) in 2020. This scheme has attracted lucrative investments that have boosted domestic manufacturing.

Similarly, the Jan Aushadhi scheme has over 10,000 stores nationwide. These stores sell generic medicines at 50-80% lower prices and offer enormous benefits to 150 million Indians annually.

Innovation is an essential cog in the wheel boosting the industry's growth. Indian firms generally invest 8-10% of their revenues in R&D. This is done to develop complex generics, biosimilars, and novel drug delivery systems.

In 2024, India’s biosimilar market was worth USD 866.2 million. It comprises of products such as insulin glargine and trastuzumab.

Add to it the emergence of digital platforms and AI-driven supply chain optimizations, and we are staring at a highly enhanced efficiency. This enables Indian pharma companies to deliver medicines to even remote regions across the world in no time.

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Global Reach and Strategic Partnerships

India’s pharmaceutical exports reach all over the world. The biggest importers of Indian drugs are the United States, the United Kingdom, and South Africa.

In 2024, the U.S. accounted for 31% of India’s pharma exports, valued at $8.6 billion. This demand is fueled by massive imports of generics and over-the-counter drugs.

India also benefits from strategic partnerships with global health organizations, such as GAVI and the Global Fund. These partnerships have benefitted India immensely. India’s collaboration with UNICEF results in the supply of 1.5 billion vaccine doses annually to 100 countries.

The rise of e-pharmacies is also shaping up India's medicine exports. With e-pharmacies, access has become easier and more affordable. Several e-commerce platforms are delivering affordable medicines domestically and to international markets.

These online platforms boost India’s digital infrastructure and have helped to streamline distribution and reduce costs.

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Challenges and Future Opportunities

The Indian pharmaceutical industry is a roaring success story and, with times to come, is destined to reach newer heights. But that doesn't mean the road ahead is a smooth one. There are and will be certain challenges that will test the mettle of India's pharmacy empire.

The sword of regulatory scrutiny over quality control is always hanging. Plus, the dependence on China for 60% of APIs is an alarming sign.

India has faced some tough situations in the past, such as the high-profile recall of cough syrups in 2023. These recalls have highlighted the need for stricter compliance.

The positive aspect is that India has taken steps in the right direction to address these issues. India has adopted Good Manufacturing Practices (GMP) and is pushing for more and more investments in domestic API production. Currently, the target is to reach 70% self-reliance by 2030.

Despite these ongoing challenges, the future is definitely bright for India’s pharmaceutical sector. This sector is projected to reach $130 billion by 2030, and the exports are expected to contribute $50 billion.

There is constant and growing demand for generics, biosimilars, and vaccines, and, importantly, India has leadership in contract manufacturing. All these aspects make the country a global healthcare cornerstone.

Apart from the current demand, which is bound to increase, there is massive potential in emerging markets in Southeast Asia and Latin America.

So Indian pharma products are surely going to grow in prominence in the upcoming years. The present belongs to India's pharma industry, and the future too will belong to the Indian pharma industry.