Indian pharmaceutical market scenario

Indian pharmaceutical market scenario

Pharmaceutical industry in India is the most progressive and the most advanced among all developed and developing countries. The industry provides huge employment opportunities to thousands of people, in addition to India's economy has made tremendous contributions.

Today, India is among the top five pharmaceutical emerging markets in the world. The market is expected to grow by 14-17% compound annual growth rate (CAGR) over 2012-16. Total revenue for the market $ 11 billion and is estimated to be $ 7.4 billion in 2020 dollars.

The growth of the industry

Indian pharmaceutical industry is growing at a rapid pace, marking the number of mergers and acquisitions (M & A) and an increase in foreign spending. The sector will be a major focus area in the next few years, the Indian pharmaceuticals are increasingly becoming popular in many parts of the world, because of cost-effective and easy to obtain. Indian pharmaceutical companies manufacturing costs up to 65%, lower than the U.S. companies, almost half of the European manufacturers.

Registered a strong double-digit growth in 13-14% of generic drug sales in 2013 increased on the back of domestic pharmaceutical market is expected to continue to grow in the treatment of chronic diseases and greater market penetration in rural areas.

The growth of the healthcare industry also provides a great opportunity to invest in the Indian pharmaceutical space. Public and private hospitals in the country had a huge industrial cleaning equipment, waste management, hygiene and laundry solutions to the growing needs of the network.

Pharmaceutical exportsThe Ministry of Commerce has for the Indian pharmaceutical industry exports $ 25 billion by 2014, the annual growth rate of 25%.

Last year, the industry exported $ 13 billion, a growth rate of 30%, each Director-General Dr. PV Appaji, pharmaceutical exports Indian Parliament (PHARMEXCIL). In addition, the government also plans to "Indian Pharmaceutical" branding across a three-year action plan to promote universal outlet.

FDI inflowsThe accumulation of the drug and pharmaceutical industry in India is attracting foreign direct investment (FDI) inflows worth 10,308.75 ten thousand U.S. dollars in April 2000 to February 2013 period, according to the Department of Industrial Policy and Promotion (DIPP)

Recent initiativesThe medicine department has prepared a "Pharma Vision 2020" file, making India the end-to-end drug discovery and innovation, and one of the main destinations for this purpose, the department provides the necessary support from the world-class foundation facilities, internationally competitive scientific research for the pharmaceutical company's research and development (R & D), venture capital funds in the public and private sector research and other similar measures.

PHARMEXCIL has canceled the needs of foreign investors from their joint venture (JV) to go before their own or in another partner to win over local companies to obtain no objection. This will promote India's competitiveness as an investment destination and entering the country to attract foreign direct investment and technology inflows higher level.

FDI policy

Under the automatic route, FDI up to 100%, is permitted in the green field investments (when a company in a new country to establish a subsidiary, and started their own production), India's pharmaceutical industry

FDI up to 100%, according to government approval route, allowing brown field investments (when the company purchased the existing factories or companies, rather than building a new plant)