India is the third largest Pharmaceutical markets in the world in terms of volumes and tenth in valuation. India pharma exports reached USD 10.8 Billion in November 2019.By 2020, the market is estimated to jump 4 positions and become the 6th largest global market in size. The country is largest global provider of generic medicines and exports medicines to more than 200 countries in the world, with US being its largest importer. The growth has been manifold in the past few decades and there is no stopping it henceforth.
Capitalizing majorly on export opportunities around the world, the industry has been favoured by multiple other factors. Driven mostly by local players who made early beginnings, the country has advances capabilities of developing various in-demand medical formulations at low prices; things that make it a lucrative market. Huge improvement in medical infrastructure, rising health awareness, higher income levels, rise in incidents of chronic diseases, and better penetration of health insurance shall continue to play a massive role in the industry’s development.The government has also allowed 100% FDI under automatic route.
Since the need for the industry evolves from the need for being well, it comes with a huge risk of costing lives due to faulty drugs and formulations. The industry is also associated to risk of increasing cost of distribution, supply chain risk, storage risks, fire risks from inflammable substances and chemical leak that can cost damage to property and people, and many other product, professional and property liabilities. These risks have to be covered well in time for the organization to function well and sustain.
