Indian Economy News

Domestic drugs formulations market to be worth US$ 65.49 billion (Rs. 5.5 trillion) by 2034: Report

  • IBEF
  • June 20, 2024

The domestic pharmaceutical formulations market is poised to reach US$ 65.49 billion (Rs. 5.5 trillion) by 2034, growing at a robust compound annual growth rate (CAGR) of 10%, according to Avendus Capital. This growth is driven by a shift from doctor-branded prescriptions to a more diverse marketing strategy supported by stringent quality standards and efficient supply chains.

Managing Director of Healthcare Investment Banking at Avendus Capital, Mr. Anshul Gupta, highlighted the sector's untapped potential in Tier II/III+ towns and rural areas amidst increasing incidences of lifestyle diseases and improved healthcare access. Key therapeutic areas like cardiovascular, neurology, anti-diabetic, and dermatology treatments are expected to lead this expansion.

The report underscores the government's Pharma Vision 2047 initiative to enhance medication affordability and sustainability in manufacturing. It anticipates significant investments in trade generics (TGx) and Jan Aushadhi Kendra stores, with branded generics (BGx) maintaining dominance. Despite potential challenges like EBITDA margin adjustments, strategic cost efficiencies, and market expansion efforts are projected to sustain growth momentum in the pharmaceutical sector.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.