Our report highlights that India now has a growing and increasingly sophisticated pharmaceutical industry of its own. It is likely to become a competitor of global pharma in some key areas, and a potential partner in others. India has considerable contract manufacturing expertise; Indian companies are among the world leaders in the production of generics and vaccines - now producing more than 20% of the world’s generics. Around $70 billion worth of drugs are expected to go off patent in the US over the next three years, and PwC thinks that India is capable of manufacturing a substantial share of the product to support the resulting generics opportunities. Although urbanisation continues, around 70% of India’s population still resides in rural areas. We note that this untapped potential is now the next volume driver for the industry, but foreign companies looking to access rural markets face many hurdles.
PwC notes a number of methods for foreign companies to explore opportunities in India:
As with any kind of new market opportunity there are additional factors to consider: