The Indian pharmaceutical industry is driving product development and breaking new grounds in medicine research worldwide. India’s generic drugs account for 20% of global exports in terms of volume, making India the largest provider of generic medicines globally. India is likely be the third largest pharmaceuticals market by 2020 in terms of incremental growth.
The Indian pharmaceuticals market increased at a CAGR of 17.46 per cent during 2005-16 with the market increasing from US$ 6 billion in 2005 to US$ 36.7 billion in 2016 and is expected to reach USD 45 Billion in revenue by 2020, revenue of USD 55 billion by 2020 as base case, and can grow to USD 70 billion in an aggressive case scenario.
India’s cost of production is significantly lower than that of the USA and almost half of that of Europe. Recently, approval time for new facilities has been drastically reduced, making India a potential destination. India has a large pool of skilled workforce possessing high managerial and technical competence facilitating drug discovery, pharmaceutical development and innovation.