Research suggests that the Indian pharmaceutical sector is the world’s second-largest by volume and in all likelihood, leads the manufacturing sector of India. In terms of the global market, India currently holds a modest 1-2% share, but it has been growing at approximately 10% per year. India has also gained its foothold in the global scene with its innovatively engineered generic drugs and active pharmaceutical ingredients.
A recent survey has suggested that the Indian pharmaceutical industry ranks 14th in terms of value at over a whooping Rs. 1 trillion! This industry started with a 15 billion turnover in 1980 and is approximated to have reached a turnover of 1006.11 billion!
Just as any other industry, the Indian pharmaceutical industry also has to face several challenges such as regulatory obstacles, lack of proper infrastructure, under-qualified professionals, and expensive research equipments among several others. However, they must learn to overcome all of this and find a way to work through all of it. The Government of India in turn has done a lot to help the pharmaceutical industry to rise. They have offered them tax breaks, a new procedure for development drugs and appropriate clinical procedures. The Government of India has also launched two schemes to help the pharmaceutical sector, namely, New Millennium Indian Technology Leadership Initiative and the Drugs and Pharmaceuticals Research Programme. The Government is also in the process of contemplating the creation of Special Purpose Vehicles (SRV) with an insurance cover for use in funding new drug research. The department of Pharmaceuticals is pondering over the creation of drug research facilities which can be used by private companies for research work on rent.
What has also contributed to the growth of the pharmaceutical industry in India is pharmaceutical export. Export has become an important driving force for growth in this industry with more than 50 % revenue coming from the overseas markets. The export of drugs is estimated to be $8.25 billion as per the Pharmaceutical Export Council of India, set up by the Government of India.
What does the future look like for Indian Pharmaceutical companies? With several companies slated to make investments in India, the future scenario of the pharmaceutical industry looks promising. There seems to be a tremendous potential for growth considering the rate at which pharmaceutical companies and the pharmaceutical industry is growing.