Calculate the annual sales of the Indian pharmaceutical industry | Guesstimates - Interview Preparation PDF Download

To estimate the annual sales of the Indian pharmaceutical industry, we can follow these steps:

Step 1: Estimate the population of India

As of 2021, the population of India is approximately 1.39 billion people.

Step 2: Estimate the average annual spending on pharmaceuticals per person

Estimating the average annual spending on pharmaceuticals per person is difficult as it varies significantly based on factors like age, income, and health. 
However, for the sake of this guesstimate, let's assume that the average person in India spends about $50 per year on pharmaceuticals. 
This is a rough estimate and may be higher or lower depending on the factors mentioned earlier.

Step 3: Calculate the total annual spending on pharmaceuticals

Now that we have an estimate of the average annual spending per person, we can calculate the total annual spending on pharmaceuticals for the entire population of India.
Total annual spending = Population × Average annual spending per person
Total annual spending = 1.39 billion × $50
Total annual spending = $69.5 billion

Step 4: Adjust for exports and imports

The Indian pharmaceutical industry is a significant exporter of pharmaceutical products. According to a report by the India Brand Equity Foundation (IBEF), India's pharmaceutical exports stood at $20.58 billion in 2020. 
We also need to consider the value of pharmaceutical imports, which, according to the same report, stood at $6.45 billion in 2020.
To calculate the net pharmaceutical sales in India, we need to add the exports and subtract the imports from the total annual spending calculated in step 3.
Net pharmaceutical sales = Total annual spending + Exports - Imports
Net pharmaceutical sales = $69.5 billion + $20.58 billion - $6.45 billion
Net pharmaceutical sales = $83.63 billion
So, the estimated annual sales of the Indian pharmaceutical industry are approximately $83.63 billion. Please note that this is a rough estimate, as the actual values may vary depending on several factors.