The Growth Of The Indian Pharmaceutical Industry

By Author: Rajnibhai Patel
Total Articles: 2
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The Indian pharmaceutical industry consists of around 20,000 companies. The pharmaceutical business in India is booming for various reasons. Firstly, the affordability of the products plays an important role in improving the conditions of the Indian pharmaceutical industry. Second, India boasts of a workforce that matches those of the world's leading pharmaceutical companies. Finally, the level of development and competition of technology in India is on a considerable increase. Due to all this, the Indian pharmaceutical industry is growing at a rate of 13.7% CAGR.

Proof of this is the fact that India is expected to enter the great league of the world's top 10 pharmaceutical markets. India currently ranks 14th in terms of value and third in terms of volume. It is obvious then that the Indian pharmaceutical industry contributes to the growth and development of the country. As India offers a perfect combination of skills, technology and economics, many foreign companies have started to outsource their manufacturing departments to India. In addition, some Indian companies have joined multinationals for research and development ...
... (R&D) in projects such as cancer, AIDS, etc. India's IT sector plays a critical role in attracting multinationals to outsource drug discovery and research contracts.

This path to success was led by the product patent system introduced on January 1, 2005. Because of this, India has become a global exporter of high-quality generic drugs. India exports to 65 countries with the United States as its largest market. According to the National Pharmaceutical Policy for 2006, the industry's export was worth US $ 3.75 billion and grew at a compound annual rate of 22.7%.

Despite this success story, the Indian pharmaceutical business has room for improvement. To utilize its capacity to its fullest, the Indian pharmaceutical industry is looking for untapped global and local markets. In India, one of the goals of the Indian pharmaceutical industry is to make medicines easily accessible in local markets. Furthermore, the demand for sophisticated and innovative medicines has increased as the common man lives the western lifestyle. The Indian pharmaceutical industry needs to make more investments in R&D and distribution. Quality wise India is still not up to international standards. For India to become a leading player in the global pharmaceutical business, the Indian government needs to support foreign investment in pharmaceuticals and biotechnology. Furthermore, biotechnology in India has not yet reached its true potential, but it is definitely on the way with the increasing importance of vaccines and bio-services.

However, with talented human resources, advanced technology, low-cost products, and mergers and acquisitions with multinational companies, the pharmaceutical business in India promises to be one of the world's leading pharmaceutical industries.