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Prospects for the Pharmaceutical Industry in IndiaMonday December 28, 2020 at 9:31 am
Do you know the global market share of India’s pharmaceutical industry? What could be the probable future for the pharma business in India? Well, the in-depth study and research statistics highlight the splurging growth of India’s pharma business!
India stands at the top position as the generic drug supplier in the global markets. The Pharmaceutical Industry of India supplies 50% of the vaccination demand on the global level. Besides, 25% of the UK’s medicine demand and 40% of the generic drug demand in the US get fulfilled by India. It signifies the standing of the Indian pharma sector on a global scale. Talented scientists and engineers from India are achieving new horizons for the pharma industry, helping it reach new milestones. As per a survey, India supplies around 80% of the antiretroviral drug supply worldwide for fighting AIDS (Acquired Immune Deficiency Syndrome).
The market size of India’s pharma sector
The future of India’s pharma business is prevalent from its current market size and the expanding economy. Predictions state that the medicine market might strike a growth of US$ 100 Billion, and the medical equipment market might grow upto US$ 25 billion by 2025. Export of pharma drugs from India along with API’s are already reaching the mark of US$ 20.70. Other pharma exports include drug formulations, bulk drugs, intermediates, and surgical equipment. Even the biotechnology industry of India is growing at the rate of 30% each year, thus giving new dynamics to the entire sector.
Prospects and developments in the Indian Pharma industry
Overall market turnover of the pharmaceutical industry in India reaches up to Rs. 1.4 lakh crore and is expecting a big jump by the end of 2021. Other recent developments targeting the future growth of the pharmaceutical industry in India are:
- The Union cabinet has shown a green flag for the Foreign Direct Investment (FDI) policy of this sector. As a result, the manufacturing of medical equipment and surgical devices will shoot up in near time.
- Pharma sector gained the cumulative FDI inflow of almost US$ 16.50 billion from April 2000 to March 2020. And this is evident in the recent data out by the Department for promotion of industry and internal trade DPIIT).
- As per the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), turnover of affordable drugs is Rs. 52 crores (US$7.38 million) only in April 2020.
- The pharmaceutical sector of India fetched private equity of US$1.1 billion after closing 27 lucrative deals in H12020.
SWOT Analysis of the Indian Pharmaceutical Industry
- Strength- Low operation, manufacturing, human resources, and discovery costs.
- Weaknesses- Rigid price regulations, absurd existence of unstructured market players
- Opportunities- New avenues for the health insurance sector, hike in per capita income.
- Threats- Low-cost rivals like China diverting the outsourcing channels from the Indian pharma industry.
What’s the vision?
Pharmaceutical Industry in India gets a growth projection by experts of 912% in the coming 5 years. Even the year 2020 has been a historical growth era for India’s pharma business as this sector unleashed new opportunities and prospects. India already ranks amongst the top 10 countries that are high in medical expenditures. Advanced research is already on board to bring out therapies like anti-depressants, anti-cancer, or anti-diabetes. The government is working in full swing with the Pharma sector to make healthcare affordable and reachable to the common people. Plunging on to rural health programs, vaccines, and lifesaving drugs predict Pharma companies’ success in India!
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