Projection of Indian Pharmaceutical Industry

The Indian pharmaceutical sector has a strong hold in the market with 3.1 – 3.6 per cent of the global pharmaceutical industry in terms of its value and 10 per cent in its volume and is expected to rise at a Compound Annual Growth Rate (CAGR) of 15.92 per cent to US$ 55 billion by the year 2020 from US$ 20 billion in 2015. India contributes the second largest share of pharmaceutical and biotech workforce in the world.

Biophar Group is a third party manufacturing which further adds that Indian drugs are exported to more than 200 countries in the world, with the US as one of the major market.  In Addition generic drugs hold a share of 20 percent globally in terms of volume and are a supplier of generic medicines globally. It is been said that the numbers are expected to rise in the times to come. India exported pharmaceutical items worth US$ 16.64 billion in this fiscal year.

Some of the key points which highlight the market scenario are:-

• The per capita sales of the pharmaceutical products offer a plethora of opportunities to    the   pharmaceutical companies.

• The economic prosperity would make the generic drugs more affordable which would further accelerate the per capita sales of the pharmaceutical industry.

• The cost of production is relatively 33% lower in India as compared to the US. 

• Like the cost of production, the labour cost is also relatively lower by 50-55 percent as compared to western countries.

• The Production costs in relates to setting up a new plant is also relatively cheaper by 40% 

• The number of skilled workforce with technical and managerial competency in India is much higher as compared to other Asian countries. 

• Indian pharmaceutical industry has strong hold outside the US market. It is the 2nd largest in number of USFDA-approved manufacturing plants.

• The number of FDA approved drugs is also very high with 2633 in number.

• India has more than 546 USFDA-approved company sites, outside the US. 

The Pharma Franchise ponders that the Government of India is taking strong initiatives and plans to set up a US$ 640 million venture capital fund to enhance the research and development of pharmaceutical industry and also upscale and uplift the pharmaceutical infrastructure.

The government plan to make India a major hub for the pharmaceutical industry for the complete research and development, manufacturing and exporting of medicines and drugs by the year 2020.