India is among the fastest-growing pharmaceutical markets in the world and has established itself as a global manufacturing and research hub. A large raw material base and the availability of a skilled workforce gives the industry a definite competitive advantage. The Indian pharmaceutical industry is estimated to be worth US$ 26 billion. The industry is expected to reach US$ 45 billion by 2020 to become the sixth largest globally & by 2025 The Indian pharmaceutical industry is expected to touch US$ 100 billion
India exports to over 200 countries. The US is the largest importer of Indian products. Exports to the UK grew at 11.9 per cent between 2009 and 2010, and 2013 and 2014.
India has the highest number of plants approved by the United States Food and Drug Administration (USFDA) outside the US. Around 584 Indian companies/sites are registered with the USFDA. Several plants have also obtained regulatory approvals from the Medicines and Healthcare Products Regulatory Agency (MHRA) in the UK; the Medicines Control Council (MCC) in South Africa; and the Therapeutic Goods Administration (TGA) in Australia.
India has one of the lowest manufacturing cost in the world. Manufacturing cost in India is approximately 35–40 per cent of that in the US as installation and workforce costs are low.
The growth in Indian domestic market will be on back of increasing consumer spending, rapid urbanisation, raising healthcare insurance and so on.
Going forward, better growth in domestic sales will depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers are on the rise.
Moreover, the government has been taking several cost effective measures in order to bring down healthcare expenses. Thus, government is focusing on speedy introduction of generic drugs into the market. This too will benefit Indian pharma companies. In addition, the thrust on rural health programmes, life saving drugs and preventive vaccines also augurs well for the pharma companies.
The latest initiative is janaushadi Bhandar where patients can buy generic medicine at a very economical cost.This also will give an impetus to generic manufacturers.