Pharmaceutical sector is an important industry of any modern day economic power. Pharmaceutical industry in India has a very humble past. After independence, development of pharmaceutical industry was one of the top agenda of government along with steel and manufacturing industry. The market was protected against competition for a long period of time by giving incentives to small firms, license-raj etc. Today the Indian pharmaceutical industry is the front-runner science-based industries in the country. Today the industry boasts of wide ranging capabilities in the complex field of drug manufacture and technology. The sector is pegged to be worth US$ 7.3 billion. The annual growth rate is estimated to be around 13%. Reports suggest that the domestic retail market would be worth around US$ 12 billion by 2012. Indian pharmaceutical industry ranks 4th in terms of volume globally and 13th in terms of value. It has 8% share in global sales & 20%-24% share in production of generic drugs. The domestic players satisfy almost all of the country’s demand for formulations and bulk drugs.
Indian firms aren’t limited to domestic market; they are now competing head on with multi national players in international arena. For many firms, exports constitute 60%-70% of the total revenue earned. Reasons for this strong growth are low cost of manufacturing, low cost of R&D, innovative scientific manpower etc. The total pharmaceutical exports in 2007-08 clocked US$ 6.68 billion against US$ 5.73 billion in 2006-07 recording a growth rate of 16 per cent.
India is poised to be one of the fastest growing pharmaceutical markets in the world. This has led to entry of many major companies in the Indian market and a huge amount of FDI inflow.
Evolution of the Indian Pharmaceutical Industry
The Indian regulatory system made several arrangements to protect the domestic pharmaceutical industry from foreign competition in its nascent phase. One of them was... [continues]
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