Pharma Market Indian Pharmaceutical Industry: Trends and Analysis
IBEF has recently announced the sustained collective efforts being made by the pharmaceutical industry and Government for sustaining the export growth trajectory. The country has made a robust commitment to implement a range of regulatory and quality measures designed to safeguard its increasing market share in developed economies.
With total global exports of close to US$ 15 billion in 2013-14, around 220 countries are sourcing pharma products from India. Argentina has recently fully opened-up its $ 6 billion drug market to Indian companies, increasing the scope to supply finished pharmaceuticals formulations. With the Latin American nation now including India on the list of countries that can supply medicines to the market, India’s current contribution of around 8 per cent to the Latin American region is expected to grow substantially in the long term.
Investments Boom: Plus 40 % Expected
On a macro level, India's top 20 pharmaceutical companies are expected to increase capital expenditure (capex) by 40 per cent to over Rs 50,000 crore (US$ 8.3 billion) by 2017-18. The investment is expected to be directed towards greater attention to regulated markets, to take advantage of substantial patent expiries expected in the medium term and an ever increasing demand for generics. The top 20 Indian pharma companies contribute close to two-third of the country's total pharma exports.
How Does the Administration React?
In light on the above developments, the Government of India along with the industry has taken measures to create a more export friendly ecosystem for the Indian pharmaceutical industry. India is one of the first few countries to launch the Trace and Track mechanism for its pharma products. The system involves affixing barcodes on the primary, secondary and tertiary levels packaging labels in phases following GS-1 global standards. The barcode helps in tracking and tracing the origin of drugs, which in turn minimises the chances of genuine drugs being considered spurious, sub-standard or counterfeit. The system is already in place at the secondary and tertiary level of packaging currently.