Indian pharmaceutical Industry

The pharmaceutical industry is among the best ranked science-based industries in the country.

This is mainly because of the various capabilities that the industry possesses in terms of technology and drug manufacture.

The pharmaceutical industry in India is highly organized and it’s estimated worth stands at about $4.5 billion.

India being a third world country, its pharmaceutical industry ranks surprisingly high in terms of the technology employed quality of medicines that they manufacture and the range of medications that they manufacture.

India’s pharmaceutical industry is almost self-sufficient. They indigenously manufacture all types of drugs from pain killers to antibiotics even to complex cardiac medicines. Manufacturers in the Indian pharmaceutical are for the most part approved by regulatory authorities in the UK and the US. These two countries have played a huge role in developing the pharmaceutical industry through continued assistance and stimulation.

One thing about the pharmaceutical industry in India is that is it highly fragmented. At the moment, there are close to 20,000 registered units. The market for pharmaceuticals is controlled by the top 250 companies. They hold a market share of about 7%. The market is very price competitive and the government has imposed some price controls. Aside from the 250 core units, there are 8000 other small scale units.

The Indian pharmaceutical industry supplies almost 70% of all of the country’s drug requirements. It supplies all tablets, capsules, drug intermediaries, drugs among others.

The industry was de-licensed which means that there is no longer need licensing of medications and other pharmaceutical products. Once a drug has been approved by the Drug Control Authority, then manufacturers can produce the drug as they see fit.

The industry has been functioning well thanks to low production costs, strong technology, increasing balance of trade, and low R and D costs. There is also adequate scientific manpower, a competent and skilled workforce.

The industry has also done so well because India is at an advantage compared to other third world countries. The country has a strong legal framework and solid financial institutions. They also have an already established market and have massive strengths in information technology.

The Indian pharmaceutical industry is said to be growing at an annual rate of 14%. To obtain sustained future growth, the players have to achieve the right product mix. Actively seek merger and acquisition opportunities is another option in order to consolidate the position that they currently hold.