Why Is The Pharma industry Highly Successful in India? – Want to know the reasons behind the success of pharma industry in India? The Pharma sector of India has been very successful. We are amongst the top 10 pharma industries of the world in terms of volume and top 15 industries in terms of size. Back in the 90s, India went short of pure Indian Pharma companies and now we have as many as thousands. In this article, we are going to share the insights about the why the pharma industry is highly successful in India.
Reasons Behind The Success Of The Pharma Industry In India
The Pharma industry has been one of the major contributors to GDP of India with 5 percent share. The industry is enormously growing multi fold times. The decades are passing and the growth of it has been mesmerizing. India stands 3rd volume and 13th when it comes to the size of the pharma industry in the world. The industry has come a long way shaping and becoming what it is today. Want to know why the pharma industry is highly successful in India. Here are the following points:
Largest Manufacturer of Generic Drugs
Our country, India has been a major manufacturer of generic drugs all over the world. The Indian pharma industry wins the 3rd slot in terms of volume due to generic drugs. Our country has the largest number of US FDA-approved pharma units. These account to more than 200+ units alone outside America. This results in owning about one-third of abbreviated new drug applications (ANDA) or approved generic drugs.
The Pharma industry is majorly occupied by the manufacturing of generic drugs. This makes a share of 72 percent beating patent drugs and over the counter (OTC) medicines. By being the 3rd largest, we have global generic drugs share of 20 to 24 percent. This is due to huge manpower and resources which are qualitative and cheap at the same time.
Reverse Engineering Technology
The Patent Acts, 1970 and the Drug Policy in 1978 helped shape the pharma industry. India is majorly ruled by process patent even though products patent was applied in 2015. Our pharma industry is a science-based industry. Our industry has the capability to meet the technology to sustain pertaining complex drug manufacturing.
Reverse engineering technology of our country has helped in achieving huge success. The technique involves studying and analysing different drugs. The companies then copy and manufacture these drugs using different processes. By this method, the multinational companies have been saving up to 30 percent to 50 percent expenses being made on Research and Development (R&D).
Largest Exporter of Pharma Products and Drugs
The Pharma industry makes some of the major export in India to the world. India is one of the largest manufacturers and exporters of active pharmaceutical ingredients (API). Our country has 300+ different types of small scale, medium scale and largest scale pharma companies. Almost 40 percent of the pharma produce is exported to the outside world. Last year in 2106, it made a value of USD 651 million. This included 55 percent formulation and 45 percent bulk drugs.
Government Support Over the years
The Government Of India and Finance Ministry of India has been supportive of the growth of the Indian Pharma industry. The Patent Acts 1970, Drug Policy 1978, Economic Liberalization 1991 and many other initiates of government made the industry successful.
The pharma companies have been offer quality services of health care due to their support. The government offered special economic zones (SEZ) and excise duty-free zones for the pharma industries. This helped them in gaining huge tax concessions and benefits. Our country provides quality man power, resources and research work at cheap rates. This attracted foreign companies to set up subsidiaries resulting in success and growth of the Indian pharma industry.
The Pharma industry of India is growing with a huge capacity to meet its growing demand. The Pharma Vision 2020 will help reshape the industry by making it more successful. If you are the person dealing in the pharma industry then you are bound to earn better profits in the future.