India's domestic pharma market forecast to boom, while exports are held back
Increasing lifestyle-related diseases will drive demand for quality and affordable treatment in the region
India’s pharmaceutical sales are expected to reach US$55bn by 2020, up from the current $18bn, although growth in exports of India-made medicines will be slower, predicts a research report released by Associated Chambers of Commerce and Industry of India (ASSOCHAM) and New York-based consultancy firm TechSci Research.
'Increasing incidence of lifestyle-related diseases such as obesity, diabetes and heart-related ailments will drive the demand for quality and affordable treatment in India,' said Karan Chechi, Research Director at TechSci Research.
He said growth would also be boosted by the introduction of more innovative drugs at affordable prices; increasing numbers of mergers between Indian and multinational drugs manufacturers; and a boost in research and development in the Indian pharmaceutical industry.
But the report expects Indian pharmaceutical exports to grow more slowly – at around 8% – due to regulatory pressures, currency fluctuations and regulatory obstacles in destination countries, notably in target markets such as the US, Russia and some African nations. However, these exports are expected to reach $19.57bn in 2020, up from $11.58bn in the financial year ending March 2015, said the report.
Growth will be boosted by the introduction of more innovative drugs at affordable prices
In the US, increased scrutiny by the US Food & Drug Administration of the quality of Indian pharma products has already affected trade, said the report. Also, consolidation within the US pharma sector is lowering generic drug prices, which could also depress Indian exports, it said.
Export revenues in Russia have been hit by the weakening of the rouble, with many Indian companies supplying essential drugs through a pharmaceutical benefits programme and hospital tenders, where prices are regulated by the government.
And Indian pharmaceutical exports to Africa face port delays, prolonged custom valuation, testing and onerous certification requirements, sometimes leading to cargoes being turned away.
'The cost of returning consignments to India is huge and the registration process for any generic pharmaceutical drug is time consuming,' the report said.
