With a growth hungry generics industry and innovative researchers, "pharmerging India" has become one of the global hubs for pharma and lifestyle products. An end is not in sight – in facts, analysts say that the time of double-digit growth rates is not over...
The Indian Brand Equity Foundation (IBEF) and Pharmexcil have forecasted that India will retain its explosive growth in generics exports (24 per cent for last 4 years) and commitment to lowering the cost of vital medicines through its development expertise. In 2012, India was recognized by UNICEF’s Supply Annual Report as the largest supplier of generics globally and the Government of India and Pharmexcil jointly predict that the Country is now at a transformative stage in its development, having created a conducive regulatory and business environment for fostering innovation and growth.
This year alone, India’s pharma exports stand at some $14.7 billion (2012-13), registering a growth rate of 11 per cent, with 55 per cent of exports heading to highly regulated western markets. It is in the developing economies where India is single handedly improving access to life-saving medicines. The Government has set a target of $25 billion for pharmaceutical exports by 2016.
In support of these goals, the Government of India has already put in place supportive initiatives with the goal of cementing the country’s position as the Pharmacy of the World. The Government of India has made tax breaks available to the pharmaceutical sector and a weighted tax deduction of 150 per cent for any R&D expenditure incurred. They have also introduced 19 dedicated Special Economic Zones to help stimulate pharma sector investment across the country. As a result of these initiatives, it is predicted that R&D expenditure will continue to grow at an annualised rate of nearly 20 per cent for the next few years.