The Foreign Direct Investment (FDI) equity inflow into the pharmaceutical industry in India has galloped in the third quarter of the current fiscal year, crossing the full financial year 2022 FDI in the first nine months. There was over $1 billion fund infusion in a single quarter.
From April to December 2022, foreign investors infused $1.82 billion into the sector, compared to $1.41 billion in 2021-22. In addition, the number of foreign funds that invested in the sector in the past three months is higher than the figure for the entire fiscal year 2020-21, which was $1.49 billion.
By September 2022, cumulative FDI in the pharma sector had crossed the $20 billion mark. Between October and December 2022, FDI infusion rose by 73% from $647 million in the same period last year.
Pharma market to grow to $65 billion by 2024
India’s domestic pharmaceutical market is estimated to grow to $65 billion by 2024 from the estimated $41 billion in 2021 and is further expected to reach $130 billion by 2030.
According to government data, FDI inflows have increased four-fold over five years until September 2022, to $ 699 million in the pharmaceutical industry, thanks to investor-friendly policies and a positive outlook for the sector.
Chinese interest in online pharmacy
Interestingly, FDI in the online pharmacy industry has reached $6.11 billion which is a record amount. It is estimated that Chinese firms have invested over $2.44 billion in Indian online pharmacies, which has got the government in a knot. Given the geopolitical tensions between China and India, the Indian government is firm on its decision to ban online drug and medicine sales across India.