India's Pharma Industry Leads as a Top Investment Market

The pharmaceutical sector in India ranks among the leading industries drawing investments. India's healthcare and pharmaceutical industries secured Rs 14,811 crore through initial public offerings (IPOs) in 2024, marking the highest amount since 2019, fueled by robust domestic demand and growing international prospects.

Data indicates that significant contributors to the record fundraising were Sai Life Sciences (Rs 3,043 crore), IKS Health (Rs 2,498 crore), and Sagility India (Rs 2,107 crore). Although there were fewer IPOs this year (13 versus 21 last year), the average size of the issues experienced a significant increase.

As per the draft red herring prospectus (DRHP) of Sai Life Sciences, “Resilient and sustainable long-term growth has been evident in the global pharmaceutical industry, particularly driven by an increase in chronic diseases, sedentary lifestyles, growth of the geriatric population, and increasing health consciousness.”

The global pharmaceutical market, estimated at $1,451 billion in 2023, is expected to expand at a compound annual growth rate (CAGR) of 6.2 percent and attain $1,956 billion by 2028. In India, the pharmaceutical industry ranks as one of the top ten most appealing sectors for foreign investment, with exports extending to more than 200 countries, including regulated markets such as the US and Europe.

“India accounts for 20 per cent of global generic drug exports by volume, positioning it as the largest global provider. Pharmaceutical exports totaled $ 25.3 billion in FY23, with March 2023 alone contributing $2.48 billion,” according to the DRHP of Zenith Drugs. Experts feel that global drug shortages allow Indian drug makers to tap the export market.