India is the world’s largest producer of generic drugs. India exports 60% of the world’s generic drugs. In 2022-23, the Indian pharmaceutical industry exported $25.39 billion, mainly generic drugs.
Opportunity
Focusing on research and development in the Indian pharmaceutical industry can lead to a significant increase in exports. Indian medicines are in high demand in the international market, especially for low-cost and high-quality generic medicines.
For this, special attention is paid to quality certification by organizations like the Pharmaceuticals Export Promotion Council . This can help the Indian pharmaceutical industry to gain more markets.
Challenge
Quality control and compliance with international standards is a major challenge for the Indian pharmaceutical industry. To survive in the global market, products have to be of high quality, which increases the cost of production.
In addition, there is a need to invest more in research and development so that new drugs can be developed. This will enable the Indian pharmaceutical industry to access more international markets.
4. Information Technology (IT) Services
Evolution of the Indian IT sector
The Indian IT sector has made tremendous progress in the last few decades. The IT sector brought India global recognition in the 1990s, and today India is one of the leading countries in software services exports. In 2023, the total value of Indian IT services exports was over $194 billion, which included software development, BPO, and IT services.
Opportunity
There are many opportunities in the Indian IT sector. Due to the increasing use of technologies like Artificial Intelligence (AI) , Big Data, and Cloud Computing, there is a huge demand for Indian IT services globally. Indian technologists and software companies are leading the way in AI and Machine Learning . According to information received from NASSCOM , India’s IT exports are likely to increase to $ 350 billion by 2025.
New opportunities are being created in India through training in new technologies and the availability of a highly skilled workforce developed in the digital age. In addition, the growing use of technology through the Digital India campaign is leading to investment in many new industries and services.
Challenge
A major challenge facing the Indian IT industry is the availability of skilled workers . Despite the need for high-quality technicians, there is a lack of access to proper training and education for them.
In addition, IT companies have to continuously improve the quality of their products and services to meet the expectations of international customers. With global competition, Indian companies need to provide better quality services at lower costs. Compliance with international security and privacy standards can also be a major challenge.
5. Gems and precious stones
India’s tradition of exporting precious stones
The gem and jewellery industry in India is an ancient and prestigious business. Indian diamonds, gold, and gemstones are in huge demand worldwide. India’s jewellery industry exported around $39.94 billion in 2022-23, mainly diamonds and gold.
Opportunity
There is huge opportunity in the Indian diamond and gemstone industry. A major hub of the Indian gemstone industry is the city of Surat , where 90% of the world’s diamonds are cut and polished. By increasing investment in design and innovation, India’s gemstone industry can tap into more global markets.
The use of technology in the gemstone industry and the use of new trends in designing can boost India’s exports. According to information received from the Gem and Jewellery Export Promotion Council (GJEPC) , innovations in designing and technology can help India gain new international customers.
Challenge
The major challenge facing the Indian gem and jewellery industry is global competition . The use of technology in diamonds and gemstones has created a major challenge in the Indian market from many countries.
In addition, the industry is also affected by the affordable availability of workers in India and the quality of their training. Training workers on the latest technologies and paying them competitive wages is a challenge.