Published on June 30, 2014

Over past few decades, the Indian Pharmaceutical sector have grown over USD 20 billion and the country is also noted as the second largest supplier of generic drugs to the United States, however this year in 2014 United States Food and Drug Administration (USFDA) have bayoneted warning letters and have also banned import against some of the Indian Pharmaceutical companies. Moreover, phenomenal growth have been observed by the Indian pharmaceutical industry in the recent years due to strong demand from export markets and mounting consumption levels in the country.

According to the sources, Pharmaceutical industries which are facing an acute offensive on quality from the USFDA, a financing scheme to the domestic pharmaceutical industry will be offered by the newly formed Indian Government to upgrade the manufacturing facilities of the Pharmaceutical industries. According to the sources, in order to approve the pharmaceutical plants by USFDA, one of the partner institutions the Small Industries Development Bank of India (SIDBI) has been projected to cater small and medium sized pharmaceutical industries to be able to enter the highly regulated market.

New highs are being traded by major Pharma industries such as Biocon, Lupin, Abbott India Aurobindo, Torrent Pharma and Indoco Remediesa and many more and are also up by 1-4%, according to the industry experts. However, as per the researched report, from FY15 onwards the domestic market of pharma should return to its historical growth of 12-15%. According to industry experts this is one of the sectors which are least affected by interest rates, policy and government changes, and commodities or prices, however in past few Budget presentations the pharma industry had been overlooked as per the industry body.