India's domestic pharmaceuticals market is expected to grow by 12 to 14 per cent in the next three years while the export market may grow by 8 to 14 per cent, according to a new report by professional services firm KPMG.
Backed by a 41 billion dollar pharma industry, the country ranks as the third-largest market globally by volume and 13 largest by value. The epidemiological transition from communicable diseases to noncommunicable diseases in the country is driving the pharma market.
At the same time, said the report, India is a key component of the global life sciences industry.
Its manufacturers are one of the largest sources of generic drugs, supplying 50 per cent of global demand for a range of vaccines, 40 per cent of generic demand in the United States -- where Indian firms are expanding -- and 25 per cent of UK medicines.
However, there have been calls for a more robust domestic industry. This is particularly timely as the COVID-19 crisis emphasises the importance of localising parts of the value chain and ensuring multiple sourcing close to consumers.
In March, the government announced a 1.3 billion fund to encourage domestic manufacture of pharma ingredients.
This follows severe supply chain disruption amid the coronavirus pandemic due to India's dependence on imports from abroad. About 70 per cent of the country's active pharma ingredients (APIs) and 60 per cent of penicillin are imported from other Asian countries.
The government is aiming to increase healthcare spending through schemes like Ayushman Bharat. The country also aims to increase its public health spending to 2.5 per cent of its GDP by 2025.
The rising level of health consciousness among people and their awareness of treatment options as well as modern medicines are also contributing towards the growth of the Indian pharma industry.
Long known as a low-cost manufacturing location, the confidence in product quality has been a challenge. However, said the KPMG report, new safeguards on manufacturing and product standards are providing much-needed reassurance to customers at home and abroad.
( With inputs from ANI )
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