India Pharmaceutical Packaging : India Emerging as Global Pharmaceutical leader
India Pharmaceutical Packaging : India Emerging as Global Pharmaceutical leader
Blog Article
Industry Overview
Over the past few decades, India has emerged as one of the leading producers of generic medicines globally. What started as a small domestic industry focused on producing low-cost formulations has now transformed into a $42 billion industry with a strong global presence.
Some key facts about the Indian pharmaceutical industry:
- 3rd largest in terms of volume and 13th by value globally
- Provides affordable medicines to over 100 developing nations
- Home to over 3,000 pharma companies and 10,500 manufacturing facilities
- Employs over 2 million people directly and indirectly
- Exports medicines worth $24 billion annually with the US, UK, Africa & Latin America as major industrys
India's Strengths
There are several factors that have contributed to India's rise as a pharmaceutical giant in India Pharmaceutical Packaging Industry. Some of its key strengths include:
Low Cost of Production
With relatively cheaper labor and raw material costs, Indian companies can produce medicines at roughly one-third the costs compared to Western nations. This allows them to offer affordable pricing for generic drugs globally.
Strong Manufacturing Capabilities
Over the decades, India has invested heavily in developing world-class manufacturing infrastructure and R&D capabilities. It meets nearly 60% of global vaccine demand and supplies over 50% of generic demand in the US. Stringent quality controls have also improved significantly.
Policy Support
The government has provided strong policy support through initiatives like Production Linked Incentive schemes, relaxed FDI norms and IPR reforms. Sector-specific incentives have accelerated local manufacturing of KSMs/APIs and production of biologicals.
Growing Exports
With free trade agreements getting signed with several countries, India is well-placed to boost pharma exports in the coming years. The recently implemented product patent regime and increased engagements with global regulators have also aided its overseas expansion plans.
Moving up the Value Chain
While generics still dominate, India Pharmaceutical Packaging Industry players are stepping up investments in novel drug delivery systems, complex generics, biosimilars and vaccines. They are focusing on neglected tropical diseases and anti-cancer therapies as well.
Challenges Ahead
However, the industry also faces certain challenges that need to be addressed for continued growth:
Dependence on China
India is highly dependent on China for over 70% of its total Active Pharmaceutical Ingredients (APIs) requirements. Any disruptions in Chinese supply chains can paralyze local production. Efforts are underway to boost indigenous API manufacturing.
Regulatory Hurdles
Stringent regulatory compliance requirements in the US, Europe and other developed industrys continue to deter some Indian companies due to costs involved. Pre-approval inspections and plant audits also remain areas of concern.
Innovation Shortfall
Despite growing R&D expenditure (~4% of turnover), indigenous new drug discovery still remains relatively low compared to pharma majors globally. Building discovery capabilities on par with global standards is the need of the hour.
Price Controls
Domestic price controls on essential drugs undermine industrial growth and profitability to some extent. While access remains crucial, proper import substitution can address affordability issues.
Quality Perceptions
Some critical regulatory lapses in a few facilities in the past have dented “Make in India” aspirations to some degree. Rekindling global confidence on India's quality excellence is important.
Way Forward
Going forward, focused efforts on boosting API ecosystem, advancing biotech capabilities, strengthening global regulatory interactions, re-energizing R&D via medical innovation parks and expanding export industry access can help India Pharmaceutical Packaging Industry achieve its true potential as a global powerhouse. With right policy interventions and industrial reforms, the country seems all set to more than double its pharma industry size to $120-130 billion by 2030.
Get More Insights on India Pharmaceutical Packaging
For Enhanced Understanding, Dive into the Report in the Language that Connects with You
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163) Report this page