India Pharmaceutical Industry, a US$8.2bn industry, is growing at a rate of 13% pa. The industry is expected to cross U.S$10bn in 2010. Indian Pharmaceutical industry (with an 8% share in global sales) ranks fourth in terms of volume, thirteen in terms of value (with a share of 1% in global sales). The price in India is controlled by National Pharmaceutical Pricing Authority. The industry is a major producer of generic drugs in the world and produces 22% of the world Generics. India is one of the top six active Pharmaceutical ingredients producers. The Indian Pharmaceutical Industry ranks 17th with respect to Exports value of bulk actives and dosage. According to pharmaceutical exports Promotion Council, the Indian Pharma industry registered a growth of 16% in 2007 – 08. Indian Pharma industry is highly unorganised sector and accounts only for 1% of the GDP. The Indian Pharmaceutical industry growth rate is expected to touch 19% from the current level of 13%. This incremental growth of 6.6% will be due to growing middle class (contributing 2%), pricing of Pharma products (1%), and untapped rural markets (2%) and market inefficiencies (1%). These rural markets have a meaningful share of the Indian Pharma market. However, to capture these opportunities the companies would require huge marketing efforts and awareness programmes for rural youth as these are the people with low income at their disposal to spend on health and allied activities. There will be a higher growth in generic segment in the coming year as drug worth US$bn in annual sales will face patent expiry in 2011 and in 2012 nearly US$80bn in annual sales will face patent expiry including US 30 best selling Patentprotected drugs. Indian generic players are applying for generic version of these drugs. The global Pharmaceutical market was valued at U.S$712 billion in 2007, growing at a rate of 6.4% over the previous year. As per IMS 2008 global Pharmaceutical Survey, sales will grow 5-6% to over U.S$735 billion in 2008, compared to 6-7% in 2007. The Global Pharmaceutical will be more than double in value to US$1.3 trillion by 2020. By 2020, the E7 countries – Brazil, China, India, Indonesia, Russia, Mexico, and Turkey could account for one-fifth of the global Pharmaceutical Sales. These nations will experience growth of 12-13% to reach US$85-90 billion in 2008. The growth of the Indian Pharmaceutical market is driven by high GDP growth rate, rising population and growing middle class. The increase in Contract Production and low cost Manufacture of Proprietary Medicines will give major boost to exports. Strong Infrastructure would boost growth of Indian Pharma Industry. Future of Industry will be determined by how well it markets its products to several regions and distributes risks, its forward and backward integration facilities, its R&D, its Consolidation through M&A, its Co-marketing and licensing agreements. The Indian pharmaceutical industry is presently meeting 95% of the countries pharmaceutical needs. The industry is growing at a CAGR of 13.7%. The per capita consumption of drugs in India stands at US$3, which is amongst the lowest in the world; Japan at US$412, Germany at US$222 and US at US$191. The Indian pharmaceutical industry is strengthening and mounting up the value chain. The industry which was purely focused on reverse engineering is now moving towards basic research driven market. The global pharmaceutical market was valued at US$712 billion in 2007, with a growth rate of 6.4% over the previous year. As per IMS 2008, global pharmaceutical sales will grow 5- 6% to over US$735 billion in 2008, compared with 6-7% in 2007. The global pharmaceutical will be more than double in value to US$1.3 trillion by 2020 and by then the E7 countries Brazil, China, India, Indonesia, Russia, Mexico, and Turkey could account for one-fifth of global pharmaceutical sales. These nations will experience growth of 12-13% to reach US$85-90 billion in 2008.
The Indian pharmaceutical industry is growing at the rate of 14% annually. It is likely to become one among the top ten in the market in the next decade. Current market size of the industry is US$8.2 billion. The size of the domestic pharmaceutical market is larger than export market. Budget 2008-09, has made reduction in excise duty from 16% to 8% on all goods produced in Pharma sector and zero excise duty on anti-AIDS drug. Indian bulk drug market is growing at 18% and formulations market at 16% growth rate. The export of bulk drug and formulations is growing at 28% and 35% respectively. Consumer spending of healthcare went up from 4% of GDP to 7% of GDP in 2007. It is expected to rise to13% of GDP by 2015. Market size of the industry is expected to reach US$11.2 billion by 2010. It is expected to grow at CAGR of 16% between 2007- 08 and 2011-12. Patented drugs, which had no share in the pharmaceutical market, are expected to have 10% market share in 2010. CRAMS would be the major growth driver of this industry. With the availability of large pool of technical and scientific personnel along with low cost production, India could develop as a manufacturing base for the global pharmaceutical industry. Basic production cost of medicines in India is up to 50% lower than in the US. USFDA approved plant can be constructed in India at 30-50% lower, compared with established markets. The research cost in India is also low compared to developed countries; as a result India is becoming a hot destination for clinical research and contract manufacturing, giving India a platform for access to new technology on which they can carry out drug discovery.