The Indian pharma industry is on the threshold of becoming a major global market by 2020. It is expected to grow at 15% to 20% CAGR to touch US$50 billion and US$74 billion in the next decade.
The country is a significant producer of APIs and formulations. Its pharma companies include global players in generics and vaccines. Some of the top Indian pharma companies are now partly foreign-owned and are already generating more than half of their sales outside the country.
India has a large pool of scientific manpower which can be used in drug discovery, development and clinical trials. Its diverse genetic pool of treatment-naive population is attractive for clinical trials.
Alongside, economic growth has increased the buying power of India’s middle class for healthcare services in general, particularly medicines. Emergence of lifestyle diseases such as diabetes, cardiovascular disease and cancer has increased the demand for medicines. Leading MNCs from Europe, the US and Japan have established a local presence.
We at PwC believe that no global pharmaceutical or life sciences company can afford to ignore India, either as a potential market, competitor or partner.