The Indian pharmaceutical market is expected to grow to US$ 55 billion by 2020 from the 2009 levels of US$ 12.6 billion, as per a McKinsey & Company report titled “ India Pharma 2020: Propelling access and acceptance realising true potential”. The industry further holds potential to reach US$ 70 billion, at a CAGR of 17 per cent.
India’s pharmaceutical industry constitutes of about 8 per cent of the world’s pharmaceutical production. Over the last couple of years, Indian pharma companies have been increasingly targeted by multinationals for both collaborative agreements and acquisition, as per a Espicom report titled, “The Pharmaceutical Market: India Opportunities and Challenges”.
The US$ 12 billion valued pharmaceutical industry in India is expected to grow at an annual compound annual growth rate (CAGR) of 10-11 per cent. The industry spends around 18 per cent of its revenue on research and development (R&D).
India is one of the most significant emerging markets for the global pharmaceutical industry. Moreover, India is expected to join the league of top 10 global pharmaceuticals markets in terms of sales by 2020 with the total value reaching US$ 50 billion, according to a report by PricewaterhouseCoopers (PwC).
The domestic pharma market is expected to grow at a CAGR of 15 to 20 percent to reach a value anywhere between USD 50 and 74 billion by 2020, says a PwC report titled ‘India Pharma Inc: Enhancing Value through Alliances & Partnerships’.
India’s exports of drugs, pharmaceutical & fine chemicals stood at US$ 9.26 billion during April 2010–Feb 2011, up 16.15 per cent as compared to US$ 7.97 billion in the same period during the previous year. India’s exports has recorded a growth rate of over 20.07 per cent, during the period of the two financial years in the study, the exports to rest of the world has grown by 9 per cent, according to DGCIS data from Pharmexcil Research.
India and Russia signed a memorandum of understanding (MoU) last year. Another will be signed in December 2011, as per Mr Devendra Chaudhry, Joint Secretary, Department of Pharmaceuticals. Indian pharma companies export drugs worth US$ 600 million to Russia every year. Pharma sector accounts for the largest Indian export to Russia.
The drugs and pharmaceuticals sector attracted foreign direct investments (FDI) worth US$ 4.89 billion between April 2000 and August 2011, according to the latest data published by Department of Industrial Policy and Promotion (DIPP).
Indian pharmaceutical market is predicted to grow to US$ 55 billion by 2020 from US$ 12.6 billion in 2009, according to a report by McKinsey.
On back of a high middle-class population base, improvements in medical infrastructure and the establishment of intellectual property rights, the Indian pharma industry is estimated to grow manifold.
Generics will continue to dominate the market while patent-protected products are likely to constitute 10 per cent of the pie till 2015, according to McKinsey report ‘India Pharma 2015 - Unlocking the potential of Indian Pharmaceuticals market’. Moreover, as per a press release by research firm RNCOS, the report titled ‘Booming Generics Drug Market in India'. The report further projects the Indian generic drug market to grow at a CAGR of around 17 per cent between 2010-11 and 2012-13.
India tops the world in exporting generic medicines worth US$ 11 billion. Currently, the Indian pharmaceutical industry is one of the world's largest and most developed, according to Mr Srikant Kumar Jena, Union Minister of State for Chemicals and Fertilisers.