India is known as the “pharmacy of the world”, and the biggest generic drug provider in the global market. The exports from the nation include drug formulations, herbal products, bulk drugs, surgical, intermediaries, biologicals, and Ayush. Over half of the global demands for various vaccines, nearly 40% of US demands for generics, and 25% of UK demands for all pharmaceuticals are provided by India.
Over the years, pharma exports from India have made huge progress in the worldwide markets. The nation’s potentially skilled scientists, engineers, and dedicated workforce are the motivation to gear this industry to profits. The current statistics depict that India gives over 80% of the antiretroviral drugs utilized worldwide to fight AIDS.
Key Trends and Predictions:
Based on the on-going benefits and predictions globally, by 2025 the pharma sector of India is anticipated to rise to $ 100 billion, while the market for a medical device is projected to increase to $ 25 billion. On a similar note, the nation’s biotechnology industry that includes bio-industry, bio-agriculture, biopharma, bio-services, bioinformatics is required to increase at an average growth rate of over 30% every year, such that rising to $ 100 billion by 2025.
There were changes made to the current FDI policy in the pharma sector endorsed by the Union Cabinet, wherein up to 100% FDI is permitted in the manufacturing of medical devices for specific diseases.
Low-cost manufacturing of generics, medical devices, intermediaries, supplements, and numerous other pharmaceutical exporters in India have drawn in many foreign investments to set up new manufacturing plants. This has prompted a consistent growth in the nation’s revenue production. Backing the plan, the industry has additionally gained consistent support from the government as it generates employment and contributes to the nation’s GDP.
A couple of the initiatives taken by the government in support of the above are:
- According to the 2019-2020 economic survey, the government expenditure on health (wrt. GDP) flooded by 1.6% in FY20 as compared to 1.2% in FY15
- Almost $ 1.3 billion funds will be invested in organizations for domestic manufacturing of pharma ingredients by 2023
- The government has designated $ 4.88 billion for the National Health Mission beneficial to offer better medical access to urban and rural people
- Under the Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), the government apportioned $ 915.72 million for the medical insurance scheme
- According to the declaration made in the Union Budget or 2018-2019, The National Health Protection Scheme is the biggest government healthcare program in the world, is projected to grant a cover-up of up to Rs. 5 lakhs per family/year to get secondary & tertiary hospitalization care, profiting 100 million poor families in India
- The National Digital Health Mission is accepted to set policies for pharmaceutical products in India available in the online market to annihilate misuse of medications and drugs
- Aiming to platform India as the worldwide pioneer for end-to-end manufacturing of pharmaceuticals, the government of India uncovered the ‘Pharma Vision of 2020.’
Strengths of the Indian Pharmaceutical Exports
The country has one of the most minimal expenses of manufacturing and is one of the fastest-growing.
The increasing support from the government for the pharmaceutical industry and a consistent rate of growth in incomes are all working in favor of the pharma business.
There are 4 key competitive benefits of the Indian pharmaceutical industry include:
- Availability of raw material
- Low cost of innovation
- Extensive Distribution Network
- Skilled workforce
India has gifted experts and pharma professionals who are capable of the English language. This helps in the minimal effort of innovation, manufacturing compliance, and documentation.
The Generic Advantage
Indian pharmaceutical organizations fundamentally cater to the generic drug market. The primary focus of pharmaceutical exporters in India includes:
- Generic Drugs
- OTCs
- Patented Drugs
- Active Pharmaceutical Ingredients
- Biosimilars
India is among the biggest exporters of generic drugs universally. As per FactSet, the total Indian Research investment in generic drugs expanded by 3.8% of sales in 2010 to $12.55 billion.
Opportunities
Latin America: An Opportunity for Indian Pharmaceutical Logistics
A report by financial express features some key facts and opportunities for Indian pharmaceutical exporters in the Latin American market:
In 2015 Indian exports to Latin America reached to $1063 million crossing $1billion with country-wise
Indian pharmaceutical exports to Latin America comprised 7.7% of the total in the year 2014-15. Off late, the trend in exports to Latin America has moved from bulk drugs (APIs) to the completed product.
Venezuela and Brazil are some of the vital business sectors for finished formulations while Mexico has a solid demand for bulk drugs. Latin America is additionally a rising market for Ayurvedic products – an opportunity for Indian exporters to tap.
The West African Market
The majority of the Indian pharmaceutical exporters see a growth opportunity in the West African market. As indicated by Mckinsey, the size of Africa’s pharmaceutical market reached $20.8 billion in 2013 when contrasted with 10 years sooner.
The survey anticipates that the size of this market will grow to become $40 – $65 billion – by the year 2020. The study estimates predictable growth in demand for prescription drugs, over the counter devices, and medicines. The report underlines the economic and infrastructure growth of African cities while likewise shows the growing activities in the healthcare sector like:
- Growth in the number of hospital beds and healthcare experts
- Government guideline and price control on medications
The study likewise proposes that local partnerships with organizations, NGOs, and governmental bodies would assist Indian pharmaceutical players to tap the growing business opportunity.
Moving forward, a few steps have been taken to decrease the cost of healthcare access for the public. The Indian government has been keen on drawing in top organizations across the world to align pharma products with the growing rate of chronic diseases, just to generate domestic sales.
Reach out to JoinHub Pharma – A leading pharmaceutical company with expertise in manufacturing high-quality, affordable generic, and branded medications.
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