The Concept

 

Manufacturing holds a key position in the Indian economy, accounting for nearly 16 per cent of the real GDP in FY12 and employing about 12.0 per cent of India’s labour force. Growth in the sector has been strong, outpacing overall GDP growth

over the last few years. For example, the real GDP expanded at a CAGR of 8.4 per cent in FY05-FY12, while growth in the manufacturing sector was higher at around 8.5 per cent over the same period. Consequently, the sector’s share in the economy increased during this period to 15.4 per cent from 15.3 per cent.

According to PricewaterhouseCoopers (PWC) in 2010, India joined among the league of top 10 global pharmaceuticals markets in terms of sales by 2020 with value reaching US$50 billion, some of the major pharmaceutical firms including Sun Pharmaceutical, Cadila Healthcare and Piramal Healthcare.

India’s pharmaceutical exports are poised to rise to about $20 billion by 2020. Indian generics account for a 30 per cent share of the US market. Currently, India not only produces more than 20 per cent of the world’s generics, it is among the top 20 pharmaceutical-exporting countries. Indian drugs are exported to around 200 countries.

However the Indian Pharmaceutical manufacturers face several challenges to maintain its cost advantage and quality now that several trade barriers have disappeared and the Indian pharmaceutical companies and competing globally. The Indian pharmaceutical companies will have to employ various methodologies to ensure process excellence and cost effective operations.

It also has to focus on issues related to supply chain in order to get drugs to consumers at the right price. Reports estimates that logistics comprise 45-55% of the costs in the Indian pharmaceutical supply chain from factory to shelf, and steps will have to be taken to reduce this cost.

Smart Pharma Manufacturing India taking place on the 4-6 March in Hyderabad, India will focus on addressing key challenges in the Indian Pharmaceutical industry. To discuss on how you can get involved now, contact 

Karan Chopra
Project Director
+65 6493 1872
karan.chopra@imapac.com

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