 |
|
Ministry of External Affairs, GOI
India is the world’s fourth largest pharmaceuticals producer with eight percent share of global production by volume and 1.5 percent by value. Indian pharmaceutical companies have a cost advantage that facilitates the production of drugs at almost one-twentieth of the cost incurred by other developed economies. With a number of generic drugs likely to become off-patent in the near future, India is poised to become a large manufacturing base for these drugs.
The Indian pharmaceuticals market is valued at over US$6.5 billion. The composition of the market is mixed with 57 percent formulations, 15 percent bulk and 28 percent exports.
Exports form a vital component of the growth strategy of most Indian pharmaceutical companies and the growth over the last five years has been more than 20 percent. The United States is the largest export market for Indian pharmaceuticals. A major share of Indian pharma exports are destined to highly regulated markets of USA, Germany, Netherlands and others. Indian generic drug manufacturing has seen a substantial rise over the last few years and is expected to be the main growth driver in the future.
Opportunities
During the period of 2002-05, the market for generic drugs is expected to exceed US$55 billion. India, with its technology, R&D facilities and trained human resources can capture a significant part of this market.
Several advanced countries are publicising increased consumption of generic drugs, especially by the fixed income older generation. This is expected to further bolster the generic drug production market in India. The domestic market in India itself is estimated to be worth US$12 billion by the year 2010.