Importance of Pharmaceutical Industry in India

1. Pharmaceutical Industry- Role & Significance in India The Role and significance of Pharmaceuticals Industry in India's GDP is immense. The contribution of this sector towards building GDP of the country is phenomenal. During the last decade, this industry has boomed and touched new heights. Pharmaceutical Industry has boomed in India due to the various reasons like clinical research, research and development related to various vaccines, etc. Various multinational pharmaceutical corporations are outsourcing their research and development activities to India, giving this industry a rise like never before. Looking at these factors which are helping in the growth and development of this industry, this industry is bound to grow and develop in future. Some of the valuable facts which states the importance of this industry are: • One of the largest pharmaceutical industry in the world. Ranks 3rd worldwide in volume. • An estimated worth of pharmaceutical industry is around US$ 6 billion • This industry is growing at a rapid rate of 13% per y • A major chunk of domestic demand i.e. around 70% is supplied by the local Indian Pharma Industry. Pharmaceutical Raw Material Suppliers - Tatvachintan

2. Pharmaceutical Industry- Role & Significance in India • Around 20%-25% of the global generic drugs is produced by Indian Pharmaceutical Industry. • Indian Pharmaceutical Industry is one of the largest producers of active pharmaceutical ingredients (API) in the world. • The Pharmaceutical Industry has the right capacity and technology required for complex drug manufacturing. • A total of around 300 companies are part of this pharmaceutical industry, including small, medium and large companies. These are the various facts which constitutes for the importance of Indian Pharmaceutical Industry. Let us now refer to some of the facts which will reveal the future of this industry in India. • If it grows as per current growth rate, Indian Pharmaceutical Industry is expected to become a US$ 20 billion industry by the end of 2015. • It is also expected that the Indian Pharmaceutical sector is going to be amongst the top 10 Pharma based markets in the next 10 years. • Patent drugs sale would see a rise in the coming years. • Indian Pharma Industry would contribute to a total sale volume of US$ 43 billion in the coming decade. • Pharmaceutical Industry would get a boost due to the growth in the medical infrastructure and the health services. • FDI has been facilitated in this sector due to the engagement of various multinational pharma companies. Well after knowing the various facts which says that Indian Pharmaceutical Industry is going to boom, it's time to know the reasons behind it. Here are a few reasons which are responsible for this industry growth. Pharmaceutical Raw Material Suppliers - Tatvachintan

3. Pharmaceutical Industry- Role & Significance in India • The cost of labor, inventory is much lower in India as compared to any other part of the world. • The multinational pharma companies can actually save upto 30%-50% by investing in research and development in India. • A rough estimate says that the cost of hiring a research chemist in India is five times cheaper than his American counterpart. • Performing a clinical trial in India is one tenth of the cost incurred in US. • Research in India will cost one eighth of the cost incurred in US. The Indian government has taken many steps to boost the growth of this industry. The government has taken many steps to reduce costs and bring down healthcare expenses. Many new and improved generic drugs have been introduced in the market. In addition to all this, emphasis on rural health programmes, many preventive vaccines and various lifesaving drugs have also contributed to the development of this sector. Pharmaceutical Raw Material Suppliers - Tatvachintan