The Indian pharmaceutical sector is one of the most impressively growing industry. Globally it is the largest supplier of generic medicines with a 20% share. This share is only expected to grow with the UN-backed Medicines Patent Pool signing up with Desano, Hetero Labs, Emcure, Aurobindo, Cipla and Laurus Labs for producing generic anti-AIDS drugs for 112 developing countries.
But it is not just exports that drive it, the Indian market is booming as India itself becomes one of the world’s biggest markets. The effect of this on the franchise pharma company in India is expectedly remarkable. Just as the pharma companies themselves multiply, the numbers of franchises have also gone up.
But what is driving the growth of the pharma sector in India?
Demand for affordable drugs: One of the major driving forces behind the growth of the pharma sector in India is the massive global demand for generic medicines, especially affordable medicines. India is slowly becoming the largest manufacturer of generic medicines for diseases.
For instance, 80 % of the global demand for antiretroviral drugs (used to treat AIDS patients) is met by the Indian pharma companies. While there are other alternatives, most of these are very highly priced. This has spiked demand in many countries where expensive drugs simply do not sell.
Indian manufacturing set-up: The reason for India’s supremacy here over countries like China is its pharmaceutical manufacturing set-up. India has a large pool of scientists who have worked excellently in keeping up with the latest developments in the pharmaceutical industry. They are backed by a team of engineers who specialize in setting up pcd pharma companies in India. Considering that such factories come with strict guidelines, the role of competent engineers and entrepreneurs cannot be ignored.
Government backing: With the pharmaceutical sector considered one of the best performing manufacturing industries, government support is important. Fortunately, the central government has also given a thumbs up to the pharma industry by cleaning different policies on investment. By allowing 100% FDI in the sector, the government has opened the gates for investors and with them, the inflow of technology and infrastructural reform. As expected, investment in the sector has zoomed ahead with many multi-nationals now taking keen interest in India.
The growth of the sector is not without the occasional hiccup or two. There are a number of areas where the pharma sector needs help. Some of the challenges are:
– There is need for better consolidation within the industry. Although there are industry bodies, we need better representation of the industry at local, central and international level.
– There is a lack of genuine scientific productivity. Medicine as an industry depends heavily on the back-breaking work of scientists. But as new diseases are reported from every corner of the globe, genuine scientific application in discovering new medicines is finding it difficult to keep up.
– We need stricter regulation for its franchises in pharma companies in India. Although a number of factories get FDA clearance, a higher number are rejected. Some are later found lacking in expensive lawsuits. We need an honest and comprehensive look by local authorities.