Published on May 5, 2014
In the global pharmaceutical scene, today India is note as one of the top emerging markets and is highly knowledge based. The steady growth of the Pharmaceutical industry has positively affected the Indian economy, whereas several companies are been attracted by the organised nature of the Indian pharmaceutical industry, that are finding it feasible to boost their operations in the country. In terms of value and volume, the pharma industry of India accounts for about 1.4% of the global pharma industry and around 10% in volume terms.
Amid the fastest growing pharma industries in the world, the pharma sector of India is estimated to expand at 12.1% CAGR during the year 2012-2020 and will reach USD 45 billion. In the year 2012, the Indian pharmaceuticals market had risen at 17% CAGR and by the year 2020, the country has been projected to be within the top three pharmaceutical markets by incremental growth and will also be noted as the sixth largest market globally in absolute size.
With the US as the key market for Pharmaceutical industry, the Indian drugs are currently exported to more than 200 countries in the world. Over the next few years investments of USD 489.19 million have been anticipated by the Department of Pharmaceuticals to set up 10 more National Institute of Pharmaceutical Education and Research (NIPER).
A self-certification mechanism by the Government of India has been introduced for bar-coding of secondary and tertiary level packaging of drugs, as it is noted the barcode helps in tracking and tracing the origin of drugs which will help in curtailing probability of an authentic drugs, being considered as spurious, substandard or counterfeit. High single digit revenue growth has been projected to seen by the domestic pharmaceutical market and as per the researched report, the profit margins are projected to get better on improved utilisation of manufacturing facilities.
According to the researched report, pharma companies have an immense opportunity to tap this market with 70% of the Indian population residing in rural areas and moreover, sharp growth has been seen in these regions with increase in demand for generic medicines also several companies are investing in the distribution network in rural areas. Nevertheless, the share of generic drugs has been projected to continue rising and by the year 2016, it could represent around 90% of the prescription drug market.
