Pharma sales in India to touch US$ 27 billion by 2016
March 02, 2014: The pharma sector in India is expected to clock total sales of US$ 27 billion by 2016, according a recent report by Deloitte. The study is expecting the sector to register a growth of 14.4 per cent from last year. The consultancy firm said in its report titled 2014 Global Life Sciences Outlook that pharma sales in India stood at US$ 22.6 billion in 2012 and is expected to further rise to US$ 23.6 billion in 2013.
In terms of the percentage out of the total healthcare expenditure, pharmaceutical sector accounted for 22.6 per cent in 2012; expected to reach 23.6 per cent in 2013 and further reaching 27 per cent by 2016. It may be noted here that India is among the top five emerging pharma markets and has been posting double digit growth on account of several socio-economic factor, including rising sales of generic medicines, continued growth in chronic therapies and increasing penetration in rural parts of the country.
Factors like India's low cost of production and strong R&D growth are the driving factors in attracting global pharmaceutical companies to India and at the same time, the comparative cost advantage enhances pharma exports. In fact, the rising global demand for generic drugs is also playing an important role in development of the country as a hub for generic drug manufacturing.
India holds over 10 per cent share in the global pharma production with over 60,000 generic brands across 60 therapeutic categories and manufacturing over 400 different active pharmaceutical ingredients (APIs). There is no doubt on the growth potential of the Indian pharma industry. In fact, the report added that the Indian companies can be expected to garner US$ 40 billion in sales as close to 46 US drug patents will expire by 2015.
The bright forecast for the domestic sales and overall potential for the pharma industry is expected to result in increasing investments into the Indian pharma sector.