Biosimilars to usher new growth, lead $1 trillion drug exports by 2030

New Delhi: Biosimilars are poised to drive the next wave of growth in the Indian pharmaceutical industry and help the country achieve an ambitious goal of $1 trillion in drug exports by 2030, a senior industry executive told ET.

The country's biosimilars market has the potential to exceed $60 billion by 2030, according to Namit Joshi, chairman of Pharmexcil, an authorised export promotion agency under the commerce and industry ministry. That would be about half of the whole pharma exports, which is expected to grow to $120-130 billion by 2030 from $50-$55 billion at present.

"Large Indian pharmaceutical companies such as Biocon, Dr Reddy's, and Cipla have already begun to make considerable strides in biologics and biosimilars, with product launches in advanced markets like the US and Europe," Joshi said. "These firms have the financial muscle, global regulatory experience, and technological infrastructure to navigate the complexities involved in the development and approval of such products." According to him, biologics, biosimilars, digital therapeutics and other high-value, innovation-driven categories represent the next phase of growth beyond traditional generics, offering opportunities to move up the global value chain.


However, success in these segments requires long-term strategic planning, robust regulatory preparedness, and, most importantly, significant investment in research and development, Joshi said. The ambition export target for 2030 was set at a meeting held in the commerce ministry with Pharmexcil officials.

Joshi said achieving this ambition of growing at 11-12% compound annual growth rate (CAGR) requires collaborative efforts from all stakeholders-pharmaceutical companies, the government, regulatory agencies, and Indian embassies/missions abroad.

"A CAGR growth of 11-12 % is definitely possible with pursuing opportunities in newer product classes such as biosimilars (especially those of off-patented molecules), gene therapy and specialty drugs," he said. It is estimated the global generic market is expected to grow at 5%, he said. India's drug exports, mainly generics, have been growing at 5-8% in recent years.

To speed up growth, it is important to ensure inclusive participation in industry's transformation to innovation-driven high-value categories and leverage India's manufacturing capacity, Joshi said.