The value of the Indian pharmaceutical market is set to nearly quadruple over the next five years, soaring from $20 billion in 2015 to $55 billion by 2020, according to GlobalData, which calculates an “impressive” compound annual growth rate of more than of 22.4%.

In its latest report, the research and consulting firm notes that India’s rapidly growing generics market is the primary driver of this nation’s pharmaceutical sector, with sales of the off-patent drugs expected to rise by nearly 84% to $26.1 billion in 2016.

With their low costs and easy accessibility, generics drugs now account for around 70% of the market, the report says.

India is also a major exporter and the largest provider of generic medicines globally, says Adam Dion, GlobalData’s senior industry analyst – the country supplies 20% of total global consumption.

Figures of India’s Ministry of Commerce and Industry are said to show that the pharmaceutical export segment more than doubled between 2008 and 2014, from $7.8 billion to $16.5 billion.

Another driver of the drugs market here, Global Data says, is the potentially lucrative biosimilars market, which is expected to increase to $40 billion globally by 2020, as biologic treatments are introduced for diseases such as diabetes, cancer, multiple sclerosis, and rheumatoid arthritis.

One company benefiting from its leading position in the biosimilars market is seen to be Dr Reddy’s. In 2007, it was the first to launch a biosimilar version to Roche’s cancer drug rituximab (Rituxan), and currently has four other biosimilars on the market.

"Dr Reddy’s drug characterization strategy and quality measures give it a “significant competitive advantage that reduces the uncertainty of potential outcome differences when used in patients,” Dion explains.