From the past three decades, the pharmaceutical industry has been performing well. Hence, more and more entrepreneurs are getting attracted to it.
What are the strengths of the pharma industry if we think about the Indian industry in particular? They are clinical research, contract research and manufacturing, and research and development of vaccines.
Many multinational industries prefer India to outsource their activities and contribute the sector to perform better.
All these factors indicate that the future is bright for Indian pharmaceutical companies.
Some facts
It is not merely an assumption, but a fact substantiated by statistics.
The Indian pharma industry is one of the largest in the world.
It is 4th in the world by ranking based on the volume of sales.
The estimated worth is more than 6 Billion USD.
The industry is growing by more than 13 percent every year.
The domestic demand for bulk drugs fulfilled by the Indian pharma industry is around 70 percent.
Not just finished goods, but the Indian pharmaceutical industry is one of the largest producers of Active Pharmaceutical Ingredients or API
The sector is the leader of scientific research-based industries.
Out of the total exports, 45% is contributed by bulk drugs and 55% by formulations.
The sector has a broad spectrum of industries of all sizes and scale. From small scale to medium-scaled and large-scaled players; the whole range is there.
The saga of growth
If you consider the rate of growth as on date, then it is expected that the industry will have worth more than 45 Billion USD by the next decade. The sector is going to be one of the Top Ten clubs of pharma-based markets in the world.
As the medical infrastructure in India is increasing, the health services will be transformed and boost the growth of the industry further.
Foreign investment will be attracted further by the large concentration of multinational players. Economists predict pharma as one of the major sectors that will attract FDI (Foreign Direct Investment) in the coming years.
Due to Contract Research and Manufacturing Services or CRAMS, there will be a high thrust to the business. The estimated value is 900 Million USD, which is quite impressive.
The low cost of production and products of international standards are the two big contributors to business growth.
Are these factors not indicating a phenomenal growth path and incredible business opportunities for pharma players? Indeed, the picture is very much encouraging.