The Indian pharmaceutical industry consists of around 20,000 businesses. The pharmaceutical business in India is booming because of several reasons. Firstly, the affordability of the products plays an important role in improving the conditions of the Indian pharmaceutical industry. Secondly, India boasts of a workforce that matches those of the top pharmaceutical businesses in the world. Finally, the development and competency level of technology in India is on a considerable rise. Due to all of this, the Indian pharmaceutical industry is growing at the rate of CAGR 13.7%.
Evidence of this is the fact that India is predicted to enter the big league of the top 10 pharmaceutical markets in the world. Currently, India ranks 14th in terms of value and 3rd in terms of volume. It is obvious then, that the Indian pharmaceutical industry is a contributor to the country’s growth and development. As India offers a perfect combination of skills, technology and economy, many foreign companies have started outsourcing their manufacturing departments to India. Also, some Indian companies have joined hands with MNCs for research and development (R & D) in projects like cancer, AIDS, etc. India’s IT sector plays a pivotal role in enticing MNCs to outsource research and drug discovery contracts.
This road to success was led by the system of product patents introduced on 1st January, 2005. Due to this, India has become a worldwide exporter of high quality generic drugs. India exports to 65 countries with US as its biggest market. According to the National Pharmaceuticals Policy for 2006, the industry’s export was worth US 3.75 billion dollars and growing at a compound annual rate of 22.7%.
In spite of this success story, the Indian pharmaceutical business has room for improvement. To utilise their capacity to the fullest, the India pharmaceutical industry is seeking untapped global as well as local markets. In India, one of the goals of the Indian pharmaceutical industry is to make drugs easily accessible in the local markets. Also, 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 the international standards. For India to become a top player in the global pharmaceutical business, the government of India needs to support foreign investments in pharmaceuticals and biotechnology. Also, biotechnology in India is yet to reach its true potential but it’s definitely on its way with the growing importance of vaccines ad bio-services.