Indian Pharmaceutical Trade: Preparing To Be Global Leader

India's upcoming Pharma industry has appeared as world leader in e fabrication of quality generic drugs since Patent Act 1970 allowed India to approach and contribute in the growth of international pharmaceutical market. Today, India is preferred destination for pharmaceutical generation. Comparatively low research charges, low cost of work force and government support also make it favorable destination to source the pharma bulk drugs. Indian pharmaceutical drug manufacturers are also using this opportunity to earn good repute for the country.

The technological proficiency and workforce of Indian Pharma companies has helped this sector to register its presence over the globe. At present Indian pharma sector is estimated to be of more than $3.1 billion (USD). In 2008, Indian pharma market was assessed about $7,743m which was 4.0% more than that in 2007. It is being predicted that Indian pharmaceutical trade will escalate better in comparison to global pharmaceutical market. The growth rate is estimated to be around 13.2% during the five years period of 2009-14. There would be no surprise if we see it touching the total business figure of $15,490m in 2014.

This sector is constituted with more than 21,000 registered units. It has expanded considerably during last couple of decades. The top 250 companies control more than 70% of overall market. Trade leader hold the market share about 7%. Severe price competition and in increasing globalization is coining the tough challenges for the drug manufacturers. Many have gone out of race but the major reason for failure of such industries was their own business models.

The industry meets around 70% of country's demand of drug intermediates, bulk drugs, pharmaceutical formulations, capsules, orals, injectibles, chemicals andtablets. About 250 large units and 8000 Small Scale Units form the pharmaceutical hub in India. Five Central Public Sector Units also cater the pharma demand.

To sustain growth rate, companies need to attain right product-mix. Core competencies are going to play important role in guiding the future of Indian pharmaceutical sector. Indian companies will have to look for the options of merger and acquisition also. R&D is going to play key role in the growth and global repute of Indian Pharma sector.

By: Nancy Joseph

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