Bio Pharma Sector in India Set to Grow at CAGR of 13.6% Between 2016 and 2022
The demographic structure of India favors the growth of the bio pharma sector in the country. Moreover, the low cost of manufacturing and strong drug development capabilities is making the Indian bio pharma sector one of the most lucrative bio pharma markets in the world.
Global market intelligence firm, Netscribes, Inc. released its latest report on the ‘Bio Pharma Market in India 2017‘. The demographic structure of India favors the growth of the bio pharma sector in the country. Moreover, the low cost of manufacturing and strong drug development capabilities is making the Indian bio pharma sector one of the most lucrative bio pharma markets in the world.
Netscribes’ latest market research report titled Bio Pharma Market in India 2017 states that while historically the biopharmaceuticals market in the country grew at a CAGR of 15.7%, it is expected to grow at a CAGR of 13.6% between 2016 and 2022. With a large portion of the population falling in the senior citizen category, the need for various healthcare services and pharmaceutical products, including biopharmaceuticals is expected to rise in the country. Moreover, with increased life expectancy, this segment of the population is expected to grow further in the coming years.
The increased disposable income of Indians is also allowing them to spend more on medicines and follow medication more diligently. Also, growing health awareness among individuals is resulting in early detection of various medical conditions, and leading to individuals being subject to various medications much earlier than before.
However, the lack of regulatory clarity acts as a major challenge for the industry. The regulation of biopharmaceuticals is inefficient and complex due to the involvement of multiple agencies and committees in the review and approval process. Competition from other Asian countries also acts as a challenge for the Indian bio pharma market. Despite the competition from other countries, India’s biotechnology sector has attracted major investments from several global companies due to its strong generic biotechnology potential.
While Indian Immunologicals Ltd. set up vaccine manufacturing facilities in Pondicherry and Hyderabad by investing INR 3 bn and INR 2.5 bn respectively, Shantha Biotechnics Pvt. Ltd. built an insulin product manufacturing facility entailing an investment of INR 4.6 bn. The country is being recognized globally as a preferred outsourcing destination for contract research and manufacturing services. This will further aid in the development of the country’s bio pharma sector. Biocon Ltd., Dr. Reddy’s Laboratories Ltd, Serum Institute of India Pvt. Ltd., Lupin Ltd. and Intas Pharmaceuticals Ltd. are some of the major companies operating in this market.