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Indian Government to Set Up Special Zones to Boost Pharma Exports

Jan 25, 2010
Bustling Indian pharmaceuticals industry offers immense investment opportunities due to its capacity to manufacture drugs at competitive prices and various other favorable factors.

According to the Health Minister Mr. Ghulam Nabi Azad, the Indian pharma sector holds immense potential to attract huge investments owing to the patent expirations of drugs worth $80 Billion by 2013 and its capacity to manufacture medicines at affordable prices, as per the news published by Business standard on January 13, 2010.

In terms of volume, the pharmaceutical industry in India is the world’s fourth largest and ranks 14th in terms of value. The industry is competent enough to produce medicines at competitive prices. As a result, there lies a great investment opportunity in the country’s drug manufacturing sector.

Furthermore, the Government of India is lending its full support to the sector, as it is evident from the fact that it has already signaled a kick-start by strengthening and reforming the regulatory framework. Also, procedures and norms are being synchronized with global requirements.

Apart from this, the government is also looking forward to set up special zones at international cargo terminals for pharma products, which will guarantee proper testing facility, storage conditions and customer clearances. This drive will further increase drug exports from India.

In India, the annual production of pharma products is worth Rs. 90,000 Crore; out of this figure, share of exports is around Rs. 39,000 Crore. According to a market research report by RNCOS, “Booming Pharma Sector in India”, a sharp increase is expected in the export of pharma products, which will register revenue worth Rs. 59,300 Crore in 2011-2012.

Moreover, apart from building these special zones for the pharma industry, the Government of India is also working on expanding zonal and sub zonal networks in the country. The number of zones is expected to be 15 in 2010-11 from 8 at present. This move will further assist the industry to speedily obtain the regulatory approvals.

According to a Research Analyst at RNCOS, “The Indian pharma industry holds a bright future owing to numerous factors like strong reverse engineering skills and low production cost backing the industry. Hence, the multinationals would never ignore such a lucrative market; rather it is anticipated that foreign investments will increase in next few years.”

Related Market Research Reports:
Emerging Pharmaceutical Markets Globally
Global Pharmaceutical Market Forecast to 2012
Asia Pacific Pharma Sector Analysis
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