Published on March 3, 2014

The global Pharma industry is under serious pressure from a large number of modernizer molecules which are facing patent cessation, a slender pipeline of new drugs, dogmatic challenges and pricing pressures. The dawn of the Indian pharmaceutical industry is phenomenal a global success story and by 2020, the industry is on a threshold of becoming a major global market. For next 10 years many industry experts believe that the industry will have the potential to increase speedily by 15 to 20% CAGR to reach between USD 49 billion to USD 74 billion in 2020.

Indian Pharma companies are already the major outsourcing partners of global Pharma companies. Today, the Indian Pharma industry globally is noted as the third largest manufacturer of drugs by volume and is the acknowledged leaders in the generics pharmaceutical space specifically in the advanced markets of the Unites States and Europe. The research & development of India are getting more innovative and the domestic companies have also strengthened their position in the world for supplying solutions across the value chain of Pharmaceutical. In areas of R&D, the industry is likely to become the competitor of global pharma.

Over past 5 years, the Indian domestic pharmaceutical industries have recorded a 13.5% CAGR and the differences between local players and multinational companies have been vaguely increasing in the market. However, compare to past few years the pharmaceutical industry is expected to face lower growth prospects.

As a percent of health care expenditures, in 2012 the pharmaceutical sales were 22.6% and market analyst expect that the sale of pharmaceutical will reach 23.6% and 27% by 2016, as stated by research report. According to the research analyst, by 2020 Indian pharmaceutical industry will rise by USD 55 billion and they deem that the Indian domestic Pharmaceutical market have a positive growth trajectory, however, in the next decade it is likely to face major transformational challenges.