The Laboratory

A dive into the Indian pharmaceutical industry

A dive into the Indian pharmaceutical industry

An article in The Hindu in 2009 asserts that the pharmaceutical industry is the only industry that remained untouched during the past economic recession. The report is reasonable considering the ever-growing demand of drugs for treating illness.
The history of the pharmaceutical market in India can be traced back to the 1970s when the Indian Patent Act was passed. Many domestic productions started between 1970 and 1990. It was only after 1990 that Indian companies started their operations on foreign grounds. By mid-2000s, India became the dream destination for the production of generic drugs. Since 2010 there has been an increase in the R&D spending for the production of cost-effective generic drugs.
The market size in FY2015 was USD 30 billion and is expected to reach as high as USD 55 billion by FY2020 and USD 100 billion by FY2025. This forecasted increase is attributed to the factors like cost effectiveness in terms of production and R&D, increasing medical tourism in India and Government policies envisioning India to become a global leader in drug manufacturing by 2020.
The top four firms that occupy the current share are Dr Reddy’s, Lupin, Cipla and Aurobindo. They contribute up to 20% of the share. Generic drugs dominate the market share with 70% while patented drugs account only 9%. Among the types of drugs, anti-infective drugs rule the share, followed by cardiac and gastrointestinal. However, cardiac drugs are said to receive a boost by 2020, considering the growing number of cardiac-related disorders in India.
With growing medical needs, favourable governmental policies, cost-effective labour and production, and an increase in research investment, Indian Pharmaceutical market is expected to multifold in the coming years and is likely to stay immune in any forthcoming economic setbacks.

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