RAS Pre 2023, held on 1 October 2023. Question text as printed in RPSC's booklet; answer as per RPSC's final answer key.

Which of the following statement, related to Pharmaceutical sector is not correct ?

Q: What is the answer to RAS Pre 2023 Q44?

(1). Correct — option (1), India has 80 percent market share of global vaccine manufacturing. The statement to find is the one that is not correct, and the Economic Survey 2022-23 checks all four at once. Its industry chapter says: "India is ranked 3rd worldwide in the production of pharma products by volume and 14th by value." The same passage continues: "The nation is the largest provider of generic medicines globally, occupying a 20 per cent share in global supply by volume, and is the leading vaccine manufacturer globally with a market share of 60 per cent." Options (2), (3) and (4) match the Survey. Option (1) puts the vaccine share at 80 per cent against the Survey's 60 per cent. The Department of Pharmaceuticals' Annual Report 2022-23 gives the same 60: India "accounts for 60 percent of global vaccine production". The idea to remember: 3rd by volume, 14th by value, 20 per cent of generics, 60 per cent in vaccines.

(1)India has 80 percent market share of global vaccine manufacturing.
(2)India is the largest provider of generic medicines globally.
(3)India is ranked 14th worldwide in the production of pharma products by value.
(4)India is ranked 3rd worldwide in the production of pharma products by volume.

Answer

(1)

Why

Correct — option (1), India has 80 percent market share of global vaccine manufacturing.

The statement to find is the one that is not correct, and the Economic Survey 2022-23 checks all four at once. Its industry chapter says: "India is ranked 3rd worldwide in the production of pharma products by volume and 14th by value."

The same passage continues: "The nation is the largest provider of generic medicines globally, occupying a 20 per cent share in global supply by volume, and is the leading vaccine manufacturer globally with a market share of 60 per cent."

Options (2), (3) and (4) match the Survey. Option (1) puts the vaccine share at 80 per cent against the Survey's 60 per cent.

The Department of Pharmaceuticals' Annual Report 2022-23 gives the same 60: India "accounts for 60 percent of global vaccine production".

The idea to remember: 3rd by volume, 14th by value, 20 per cent of generics, 60 per cent in vaccines.

Why the others are wrong

(2)
India is the largest provider of generic medicines globally. — This statement is correct, so it cannot be the answer. The Economic Survey 2022-23 calls India the largest provider of generic medicines globally, with a 20 per cent share in global supply by volume.
The Department of Pharmaceuticals' 2022-23 report adds that India makes about 60,000 generic brands across 60 therapeutic categories.
(3)
India is ranked 14th worldwide in the production of pharma products by value. — This statement is correct: the Economic Survey 2022-23 ranks India 14th by value in the production of pharma products.
The value rank sits far below the volume rank because the two measure different things: one counts quantities produced, the other their money worth.
(4)
India is ranked 3rd worldwide in the production of pharma products by volume. — This statement is correct. The Economic Survey 2022-23 ranks India 3rd by volume, and the Department of Pharmaceuticals' annual reports for 2021-22 and 2022-23 also rank Indian pharmaceutical production third by volume.
Swapping it with the value rank, 14th, would make it wrong, but as printed it holds.

Concept

A country's pharmaceutical rank depends on what is counted. By volume, the count is the quantity of medicines produced; by value, it is their money worth.

The Department of Pharmaceuticals describes the Indian industry as known for generic medicines and low-cost vaccines. That profile fits a country that ranks much higher by volume (3rd) than by value (14th).

Shares also need a base. The Survey's 20 per cent is India's share of global generic supply by volume, and its 60 per cent is a vaccine market share.

The Department's Annual Report 2022-23 words the vaccine figure as India accounting for 60 percent of global vaccine production, where the Survey speaks of market share.

RPSC's 2023 Prelims syllabus lists "Major Sectors of Economy: - Current Status, Issues & Initiatives of Agriculture, Industry, Service and Trade sectors" under Economic Concepts and Indian Economy.

The Department of Pharmaceuticals' Annual Report 2022-23 gives the industry's turnover in 2021-22 as ₹3,44,125 crore, and its contribution as around 1.32 per cent of Gross Value Added (at 2011-12 prices) in 2020-21.

The same report says India contributes 40 to 70 percent of WHO demand for DPT and BCG vaccines and 90 percent for the measles vaccine, and that its 500 API manufacturers contribute about 8 per cent of the global API industry.

The Economic Survey 2022-23 adds that cumulative FDI in the pharma sector crossed US$ 20 billion by September 2022.

Key facts

Economic Survey 2022-23: India ranks 3rd worldwide in the production of pharma products by volume and 14th by value.
Economic Survey 2022-23: India is the largest provider of generic medicines globally, with a 20 per cent share in global supply by volume.
Economic Survey 2022-23: India is the leading vaccine manufacturer globally with a market share of 60 per cent.
Department of Pharmaceuticals, 2022-23: India contributes 40 to 70 percent of WHO demand for DPT and BCG vaccines and 90 percent for measles.
Department of Pharmaceuticals, 2022-23: pharmaceutical turnover in 2021-22 was ₹3,44,125 crore.

The four statements against the Economic Survey 2022-23

Option (1): 80% share of global vaccine manufacturing→Survey: 60 per cent market share — statement wrong

Option (2): largest provider of generic medicines→Survey: largest provider, 20 per cent of global supply by volume

Option (3): 14th by value→Survey: 14th by value

Option (4): 3rd by volume→Survey: 3rd by volume

Economic Survey 2022-23, chapter 9 (Industry).

Study next

Production Linked Incentive scheme for pharmaceuticalsPradhan Mantri Bhartiya Janaushadhi PariyojanaActive Pharmaceutical Ingredients and import dependenceIndia's pharmaceutical exports and trade surplusFDI policy in the pharmaceutical sector

Common traps

Swapping volume and value ranks: India is 3rd by volume and 14th by value, not the other way round.
Mixing the two shares: 20 per cent is India's share of global generic supply by volume; 60 per cent is the vaccine figure.
Reading a WHO-demand share as a world share: the Department of Pharmaceuticals' 2022-23 report gives 40 to 70 percent of WHO demand for DPT and BCG and 90 percent for measles, separate from its 60 percent of global vaccine production.

A question can list statements on India's global standing in pharmaceuticals and ask which is not correct.

A question can also ask India's rank by volume or by value, or match a share (20 or 60 per cent) to generics or vaccines.

Related PYQs

UnlockIAS compared this question with questions from other RAS Prelims papers and found none similar enough to link.

Practice

practice — not a real PYQ
According to the Economic Survey 2022-23, India's share in the global supply of generic medicines by volume is
- (a)10 per cent
- (b)20 per cent
- (c)40 per cent
- (d)60 per cent
Answer(2) — The Survey gives a 20 per cent share in global supply by volume. Option (4) is the Survey's vaccine market share; options (1) and (3) are not figures the Survey gives for generics.
practice — not a real PYQ
According to the Economic Survey 2022-23, India's rank worldwide in the production of pharma products is, by volume and by value respectively,
- (a)3rd and 14th
- (b)14th and 3rd
- (c)1st and 3rd
- (d)3rd and 1st
Answer(1) — The Survey says 3rd by volume and 14th by value. Option (2) reverses the two; options (3) and (4) give ranks the Survey does not.

The booklet also prints a fifth choice under this question: “(5) Question not attempted”. Options (1)–(4) above are the four answer options.