Why Pharma Business Successful in India?
The pharmaceutical industry is one of the fastest-growing industries in India witnessing robust growth over the past few years. India is now ranked 3rd worldwide by volume and 14th by value, counting for 10% world’s production by volume and 1.5% by value. India is ranked 4th in terms of production.
The pharmaceutical industry accounts for 6% of the total FDI of the company. The rise in the FDI flows has helped in the expansion, growth, development of the industry.
Factors That Make The Indian Pharmaceuticals Sector Successful
Many multinational companies are collaborating with Indian companies so as to improve efficiency and reduce operating cost. This is surely due to the many benefits that the Pharma industry offers such as low investment options, low risk, high profitability, monopoly, etc. Apart from it the fact that the needs of the Health sector are never-ending and with the Passing times, people are becoming more and more aware of their health the demand shall continue to rise.Factors that are leading to the development of the pharma industry in India are as follow:
Generic Drug:
India is one of the largest manufacturers of generic drugs by volume. For the ones not aware of what generic drugs are, these are the same as the branded drugs but have a patent right. These drugs cost less and their manufacturing is also cost-effective. These drugs are quite effective.• Cost efficiency:
India is a nation which has the capability to produce high-quality pharma product at low costs giving a huge advantage for domestic industry. It provides a competitive export leading to exports rise to US$17.15 billion in FY19. India provides a cost advantage by providing skilled labor at cheap prices.
• Economic drivers;
Economic prosperity has led to improvements in the drug affordability. A lot of companies are focusing on targeting the rural areas so that the healthcare needs of the people are met and the development of better medical infrastructure takes place. There has been an increase in the health insurance sector leading to drive expenditure on medicine. Optimum utilization of the opportunity of increasing awareness among people the pharma industry is mounting highs leading into the sky of prosperity.
• Increasing Investment
In the recent few years, there has been a rise in investment in the pharma sector by the private sector. The industry has seen a good number of mergers & acquisitions worth US$1.47 billion.
• Government Policy.
There are a number of government policy which is leading to the success of the pharma industry.
The government has launched the Pharma Vision of 2020. The project aims to achieve a gigantic value of USD 55 billion by2020. A number of favorable steps have been taken by the government to promote investment. The government has increased the FDI in this industry to 70% making it easier to invest through foreign source of funding. The Patent Act of 1970 is very flexible and allows anyone to grow in the pharma industry without much difficulty. Economic liberalization also had a major hand in the uprising of the industry
Conclusion
Considering the various factor and the recent action, it must be noticed that India is majorly involved in the process patent and not product patent, making the Third-Party Pharma manufacturing the biggest benefiting area in this industry. No matter what, one cannot deny the fact that the Indian Pharmaceutical industry is reaching its height at the present moment and it is one of the best investment options in India. Hope that this post must have helped you to know about the Pharmaceutical industry. If you wish to invest in this industry then, Biofield Pharma is the best Pharmaceutical company to join hands with. We have the best investment offer for interested people.Feel free to connect:
Call Us: +91-9216300566, +91-9216300166.
Email: info@biofieldpharma.com
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