The Indian pharmaceutical sector is witnessing tremendous growth with the contract research and clinical trials businesses taking wing, and the new patent regime opening new avenues for players in the country. The pharmaceutical companies in India have carved a place for themselves globally--consistently striving to innovate and make healthcare affordable across all sections of society, with a focus on people who are most deprived of it, causing the industry to grow faster and at the same time giving people longer and healthier lives.

• The Indian pharmaceutical industry ranks 4th in terms of volume (with an 8 per cent share in global sales) globally
• In terms of value it ranks 13th (with a share of 1 per cent in global sales) and produces 20-24 per cent of the world's generic drugs (in terms of value).
• India is also one of the top five active pharmaceutical ingredients (API) producers (with a share of about 6.5 per cent).

The Indian Pharmaceutical Industry today is in the front rank of India's science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. The sector is estimated to be worth US$ 6 billion, and growing at over 13 per cent annually. Indian pharmaceutical companies now supply almost all the country's demand for formulations and nearly 70 per cent of demand for bulk drugs.

Exports

The Indian pharmaceutical industry ranks 17th with respect to exports value of bulk actives and dosage. Several factors make the Indian pharmaceuticals an industry to reckon with, namely:

• Self-reliance--displayed by the production of 70 per cent of bulk drugs and almost the entire requirement of formulations within the country
• Low cost of production
• Low R&D costs
• Innovative Scientific manpower
• Strength of National Laboratories

As a result exports constitute nearly 40 per cent of the production, with formulations contributing 55 per cent and bulk drugs 45 per cent. The industry comprises large, medium and small-scale operators out of which some 300 companies' together account for nearly 90 per cent of the domestic market, while the rest is accounted for by a large number of small companies which total about 9000 units.

Growth

According to a McKinsey study, the Indian pharmaceutical industry is projected to grow to US $ 25 billion by 2010 whereas the domestic market is likely to more than triple to US$ 20 billion by 2015 from the current US$ 6 billion to become one of the leading pharmaceutical markets in the next decade.