Indian pharmaceuticals industry holds its claim to being the third largest globally by volume, with aims to lead India’s manufacturing sector. It currently tops the chart amongst India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology.

The pioneers in country’s medical sector have been providing healthcare products since 1903, which exist today as government-owned drug manufacturers. Pharmaceuticals were imported till early 60s in fully formulated form or in bulk.

The country went through severe shortage of foreign exchange in mid 70’s, and government introduced high import duties as well as restrictive import license policy as a consequence. As a result, country’s pharmaceutical firms encouraged domestic engineering enterprises for local manufacturing of pharmaceutical equipments. The domestic production of these equipments enhanced production of Indian pharmaceutical industry, thus fulfilling the growing demand of medications in the domestic market.

The government too encouraged growth of Indian manufacturers with introduction of Patent Act in 1970. The economic liberalization in the 90s enabled the industry reach where it stands today. On the other hand, the lack of patent protection worked as Indian market being undesirable to the multinational drug manufacturers, and they streamed out, making room for Indian drug manufacturers.

They carved a niche in the Indian and world markets both, with their expertise in new processes for manufacturing drugs at low costs. Although some of the major drug manufacturers have taken small steps into drug innovation, the industry as a whole has been following this business model even today. The industry earned revenues worth Rs. 137 billion ($3 billion) in FY 2009-10, registering a 17% growth against the last fiscal.

Indian exporters are equipped with an extensive variety of pharmaceutical products including drug initiatives, Active Pharmaceutical Ingredients (APIs), Finished Dosage Formulations (FDFs), Bio-Pharmaceuticals, Clinical Services including surgical and diagnostic equipments, supplying to a number of countries globally. Indian Pharmaceuticals exports in 2009-10 FY equaled $9.1 billion, registering a growth of 5.9 per cent against the previous fiscal.

Various Diagnostic Equipments manufactured by Indian manufacturers include - Blood Pressure Monitor, ECG monitor, Foetal Heart Monitor, Hammer, Pregnancy Test Card, Resuscitator, Thermometer, Tongue Depressor, Stethoscope, Weighing Scale, etc.

A number of ENT equipments, Ophthalmology equipments (Ophthalmic implants), Endoscopy Products, Laryngoscope, Resuscitator, surgical instruments are manufactured and exported too.

The Surgical instruments manufactured in the country include – Medicare Blood Lancets, Surgical Blades, Stitch Cutter, Skin Graft Knife & Blade, Scissors, Artery Forceps, Needle Holders and Suturing, Midwifery & Gynaecology Instruments, Retractors, Rectal & Urethral Instruments, Amputation & Post Mortem Equipments, None Instruments, Eye Forceps, Scalpels & Bistouries etc.

Holding a modest 1-2% share in the offshore markets, the industry is growing at about 10% annually. The country gained a foothold in the global markets with generic drugs engineered innovatively and active pharmaceutical ingredients (API). It now aims to becoming a major player in outsourced clinical researches and contract manufacturing as well as research.

The Pharmaceutical industry’s growth has been fueled by exports to the global markets. Indian manufactured drugs and pharmaceutical equipments are exported to a large number of countries, with an ample of the share reaching destinations in the advanced regulated markets of the US and Western Europe.

Indian suppliers of pharmaceuticals and equipments are increasingly making good use of B2B portals and directories to find consumers and markets in the domestic as well as global markets.