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Robust pharma sector booms

INDIA'S pharmaceutical industry is the world's third largest in volume and stands 14th in terms of value. According to the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, the total turnover of the industry between September 2008 and September 2009 was US$21.04 billion. Of this the domestic market was worth US$12.26 billion.

Moreover, according to an Ernst & Young study, the increasing population of the higher-income group will open a potential US$8 billion market for multinational companies selling costly drugs by 2015. It is said the domestic pharma market is estimated to touch US$20 billion by 2015, making India a lucrative destination for clinical trials for global giants.

Export of pharmaceutical products increased from US$6.23 billion in 2006-07 to US$5.92 billion in 2007-08 and to US$ 8.7 billion in 2008-09 - a combined annual growth rate of 21.25 percent. According to Jyotiraditya M. Scindia, minister of State for Commerce, pharmaceutical exports have grown by 21.61 percent, 14.37 percent and 28.54 percent in the three consecutive years of 2006-07, 2007-08 and 2008-09, respectively.

Pharmaceutical exports during April-December 2009 were worth US$6.33 billion, according to the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers. According to the All India Organization of Chemists and Druggists (AIOCD), the industry will grow by over 100 percent over the next two years.

"People are increasingly becoming health conscious and the sale of all types of medicines, particularly antibiotics, will soar. We expect the business to double by 2012," says JS Shinde, president of AIOCD.

According to Shinde, the pharmaceutical industry is currently growing at 12 percent, but this will accelerate soon. The sale of all types of medicines stands at US$9.61 billion, which is expected to reach around US$19.22 billion by 2012.

Further, a RNCOS report titled "Booming Pharma Sector in India" projects continued combined annual growth rate of around 13 percent during 2010-11 to 2012-13.

According PricewaterhouseCoopers in April 2010, India will join the league of top 10 global pharmaceuticals markets in terms of sales by 2020, with total value reaching US$50 billion.

The formulations industry is expected to prosper parallel to the pharmaceutical industry.

(Courtesy of IBEF)


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