The pharma industry and the healthcare sector were working 24/7 to deliver life-saving medicines in the pandemic. Thus, the pharmaceutical industry is one of the critical industries for the country. But, several things are unknown about the industry. We’ll decipher the reasons behind the success of Indian pharma companies.
Unmatchable Growth of Indian Pharmaceutical Industry
The Chairman of Dr. Reddy’s Laboratories, K Satish Reddy, said that the growth of the Indian Pharmaceutical industry is whooping. The sector will grow three times to about 130 billion US dollars in 2030. At present, the combined market of both domestic and export is around 42 billion dollars.
The innovations had made it possible for Indian companies to stay right on the top. The Indian Government has played a vital role in shifting this momentum towards Indian companies. Indian Pharma Industry covers 5% of the nation’s GDP.
The future for the Pharma industry in India looks bright and shining. But what exactly made the difference? Let us discuss the reason behind the impeccable performance of these industries.
Reasons Behind Success of Indian Pharma Companies
One of the most significant reasons behind the popularity of Indian companies is that they can produce quality generic drugs at a low price. Also, India is the third-largest manufacturer of generic medicines in the world. With more than 200 FDA-approved pharma units, India is right on the top.
The lower production cost and quality manufacturer are the reasons behind the growth of the industry.
The Indian companies are serving APIs (Active Pharmaceutical Ingredients) to global pharma firms. The nation is among the largest producers of APIs. When it comes to export, India is on the list of top exporters of drugs and APIs.
40% of total production is exported to other countries that contribute to the nation’s GDP. The value of the pharma export industry was around 651 million US dollars in 2016. The export consists of formulations and generic drugs.
The advancement in science and technology is another reason for the significant success. The credit goes to Patent Acts and Drug Policy in 1970 and 1978, respectively. India’s pharmaceutical industries are prepared to manufacture complex drugs in bulk.
The companies are masters in creating a copy of complex drugs. Several processes are used to manufacture copies of a drug. Companies can use the expenses of research in a different field because of the patent mechanism. International companies were able to save more than 50% of their expenditures by investment.
The Indian pharma industry is the backbone for international supply. The Government is taking further steps to expand the industry, and thus the market will boom in the coming years. It’s the best time to invest in Indian pharma companies to get better returns.