Stating that the Indian pharmaceutical industry is on a “good growth path’, a CII-PwC report on Monday said it is likely to be among the top-10 global markets in value terms by 2020. However, it also warned on Monday that the industry “will have to watch out for the regulatory interventions,” according to the report titled “India Pharma Inc: Gearing up for the next level of growth”. High burden of disease, good economic growth leading to higher disposable incomes, improvements in healthcare infrastructure and improved healthcare financing are driving growth in the domestic market.
The Indian Pharma Industry has been growing at a compounded annual growth rate (CAGR) of more than 15% over the last five years and has significant growth opportunities. However, for the industry to sustain it till 2020, Companies will have to rethink their business strategy. They will have to adopt new business models and think of innovative ideas to service their evolving customers faster and better. Sujay Shetty, leader, Pharma Life Sciences, PwC India, said the Industry has seen many regulatory interventions over the last one year, which will require careful consideration by Pharma Companies as they plan their future strategies.
Pharma Companies will continue to grow both organically and inorganically through alliances and partnerships and focus on improving operational efficiency and productivity. Developments in the health insurance, medical technology and mobile telephony can help in the industry’s growth by removing financial and physical barriers to healthcare access in India, he added.
Rajiv Modi, Chairman CII Pharma Summit and Vice-Chairman, CII Gujarat State Council, said the report highlights the different levers that have fuelled the growth of the Indian Market, emerging new business models, as well as the key success factors that need to be kept in mind to achieve sustainable long-term growth.
- Hindu Business Line