Indian Pharma To Reach $450 Bn By 2047, Report Finds Out Key Levers

EY Parthenon (EY-P), the strategy consulting firm, in partnership with Organisation of Pharmaceutical Producers of India (OPPI), launched a report titled ‘Reimagining pharma and healthcare for India@100’ on Thursday at an OPPI event in Delhi. 

The report explores the sector’s growth potential on the back of three pivotal imperatives –transformative innovation, fortification of manufacturing and quality standards, and pursuit of sustainable and equitable healthcare.

Between September and October 2023, EY-P and OPPI undertook primary research consulting top CXOs from leading Indian and global multinational pharmaceutical companies, to gain insights into the strategic priorities that will pave the way forward for the industry.

Basis that, the report identifies three key focus areas crucial for the Indian pharma and healthcare sector to reach the ambitious 2047 milestone. These include unleashing the potential for value-driven research and innovation in the pharma industry, integrating into the global pharma supply chain of the future, and ensuring sustainable and equitable healthcare access for all.

Suresh Subramanian, Partner and National Life Sciences Leader, EY Parthenon India said, "Over the past few decades, the Indian pharmaceutical sector has witnessed substantial growth. Expanded PMJAY insurance coverage, cost-effective healthcare through Ayushman Bharat Digital Mission, and overall macroeconomic growth, have enhanced accessibility. Driven by this, the industry has the potential and bold ambition of reaching USD 130 billion by 2030 and USD 450 billion by 2047. Our report examines the industry's potential to be an innovation powerhouse, play a crucial role in the global pharma supply chain, and ensure sustainable access to healthcare, with digitalization as a force multiplier.”

The report says that India finds itself at the brink of an inspiring economic metamorphosis, poised to surge to a staggering USD 26 trillion economy in market exchange rate terms by 2047–48. This transformation is not just about macroeconomic growth, it is also set to empower citizens of the country with a projected per capita GDP that is over sixfold higher than its current level. 

Concurrently, the report highlights that the healthcare sector is experiencing a remarkable transformation, evident in the substantial increase in healthcare expenditure as a percentage of GDP. In 2015, this figure stood at 1.3 per cebt, and it is projected to almost double to an estimated 2.5 per cent by 2025

Suresh Pattathil, President, OPPI said, “At the threshold of significant change, the Indian pharmaceutical and healthcare sector is positioned to be a key player in shaping the nation's future. The report, a joint initiative by OPPI and EY-P, outlines an ambitious path for the industry, aligning with the visionary objectives articulated during India's 75th Independence Day celebrations under the concept of ‘Amrit Kaal’. It explores the pace of reforms and the interplay of factors such as digital technologies, manufacturing, supply chain, operational efficiency, and more, shaping the industry’s progress over the next two decades.”