The Indian pharmaceutical market is projected to reach the value of $20 Billion by 2015 on the introduction of patent regime and expanding upper middle income group.
The Federation of Indian Chambers of Commerce and Industry (FICCI) and Ernst & Young have jointly published a report which states that the Indian pharmaceutical industry is projected to be worth $20 Billion by 2015 and will be counted among the world’s top 10 industries, as reported by INTERNATIONAL BUSINESS TIMES
High growth projection for the Indian pharmaceutical sector is primarily based on the changes in India’s patent structure, decentralization of filing process, digitization of records and inclusion of patent examiners. The patent structure actually resulted from product patent regime of 2005.
Moreover, the trend of patent acquisition has picked up momentum tremendously in the country as 35,218 patent applications in total were filed during the last fiscal (2007-08). Out of these, 6040 domestic and 29,178 were foreign applications. The new patent regime has made pharmaceutical companies to see India as a preferred destination for every activity associated with the pharmaceutical industry such as research and development, contract manufacturing, generic drug research, conduct of clinical trials and co-marketing alliances.
Another important supporting factor for the industry is large section of high income class that will grow to 25 Million by 2015 from 10 Million 2009. This section will drive the affordability of expensive patented drugs.
According to a new study “Booming Pharma Sector in India
” by RNCOS
, the Indian pharmaceutical sector has posted double digit growth rate in the last five years and is presently accelerating at a pace twice more than the global pharmaceutical market. In near future, the potential and opportunities in this market will rise by several folds. In fact, the Indian pharmaceutical market is expected to grow at a CAGR of 16% between 2007-08 and 2011-12.
A Senior Research Analyst at RNCOS
said, “The introduction of patent regime and continuously expanding base of upper-middle class population are two critical factors boosting the Indian pharmaceutical market that has seized the attention of global investors. However, it becomes essential for the industry to deal with the menace of fake drugs as it is the biggest stumbling block and disgracing the country in both local and international market.”
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