The Future of Pharma Companies in India – The Indian Pharmaceuticals industry is growing its presence every. The multi-billionaire industry is one of the profitable industries in the world. The future of pharma companies in India seems to be bright due to its ongoing successful track and government support which has helped paved way for the sector.
Top 5 companies have already spent Rs 8,025 crore in R&D in FY17 which is expected to bring a good return. The end of drug patents worth 50 billion in these 5 years has encouraged companies to offer better. The companies are expected to grow organically and inorganically through various means of partnership and alliances. The exports to the US are also expected to grow this year which reflects the future of pharma companies in India.
The pharma industry in the early 1900s was under the rule of British. The pharma industry was majorly ruled by foreign companies. We had only few pharma companies which are purely Indian. Post-independence brought the new light. The government introduced acts and regulation to bring forth an industrial revolution.
The Indian pharma industry grew after the Industrial Policy Resolution of 1956. The act places the pharma industry in Schedule B. The private sector was encouraged for better growth opportunities for all. This was the first time the industry generated a turnover of 100 crores back in 1962.
The Indian Patent Rights Act of 1970 helped make the country what it is today – 3rd largest generic drug manufacturer in the world. The Economic Liberalization act in 1991 attracted much direct foreign investment. The cheap yet quality manpower and efficient sources made us an attraction point. This meant an increase in a number of set up of subsidiaries of foreign companies.
The above was a brief history of the Indian pharma industry. The government made the industry independent enough to generate higher values for them. It contributes to 5 percent of the country’s GDP. Our industry is one of the best research and development places of the world. Look at the reasons behind the success of the Indian pharma sector:
India grabs the 3rd place in terms of volume. This implies the potential of serving largest generic drugs manufacturing supplies in the world. Our country has been manufacturing generic drugs in abundance with the help of reverse engineering technology. Here are some facts:
Though the Patent Acts came into existence in 1970 and the Drug Policy in 1978 the industry was short of products patents rights. The industry has been a science-based industry attracting better technology capabilities needs for complex drug manufacturing. The companies studied and analyzed the drugs first. They then manufacture them using different process or method. This is a part of process patent which involved the Indian Pharma industry.
Our country India has been manufacturing in abundance. This means a boost to the import-export sector of the pharma industry. The gradual growth over the years made export services better attracting better foreign direct investment. The current GST system has also been an initiative by the government to attract FDI or foreign direct investment:
The government is trying hard to achieve the goal of pharma vision 2020. It has offered good schemes and policies which will brighten up the sector. Companies are likely to face issues in Abbreviated New Drug Application (ANDA) approval which is said to be removed in course of time. I hope the article was useful to you.