Indian Pharmaceutical Industry Growth Till Date

Internationally, India is positioned as third in terms of volume as well as fourteenth in terms of value. According to the Department of Pharmaceuticals, the entire revenue of India’s industry in the middle of 2008 and September 2009 was US $21.04 billion. Mumbai, Hyderabad as well as Ahmedabad are the major hubs of the country. Also, the domestic market is anticipated to reach US $49 billion by 2020.

The government began enhancing the growth of medicine manufacturing through Indian companies in the beginning of 1960, along with the Patents Act in 1970. But, economic liberalization in nineties by the former PM P.V. Narasimha Rao as well as the Finance Minister, Dr. Manmohan Singh at that time, empowered the industry to turn out to be what it is, at present. This patent act removed composition copyrights from food as well as medicines, and although it had process patents, these were reduced to a period of 5 to 7 years.

The lack of patent protection made the market undesirable to the international companies that had ruled the market. Indian firms carved a place in both the domestic as well as international markets with their proficiency in reverse-engineering new methods for manufacturing drugs at low prices. Even though, few of the bigger companies have taken baby steps towards drug improvement, still, the industry all together has been following this business model till now.

Pharmaceutical Industry, These Days

The number of only Indian pharma companies is quite low. The Indian industry is mostly operated and controlled by leading foreign firms having divisions in the country, owing to availability of low-priced labor in India at lowest price. In 2002, more than twenty thousand registered medicine makers in the country sold dollar nine billion worth of formulations as well as bulk drugs. 85% of these formulations were retailed in the country, however; more than half of the bulk drugs were exported, a lot to the USA as well as Russia. A maximum number of players are small to medium initiatives; two hundred and fifty of the biggest companies control seventy percent of the market. As a result of the Patent Act, international firms represent just half of the market now, compared to 30 years ago.

A maximum number of top pharma companies operating in the country, even the international ones, hire Indians almost completely. Home-based drug manufacturers, like a lot of other trades in the country, are mostly a combination of public as well as private initiative.