Government’s decision to increase FDI up to 100% in Indian pharmaceutical sector is expected to boost mergers and acquisitions and private equity investments in the sector. India’s pharmaceutical market may reach $20 billion this year and about $55 billion by 2020 from about $18 billion as of 2014, clocking a compounded annual growth rate (CAGR) of over 22%, according to a joint study by the Associated Chambers of Commerce & Industry of India (ASSOCHAM)-TechSci Research released in June. The pharmaceutical sector in India will register higher growth during the course of the next five years (22%) as compared to a CAGR of about 14% clocked by the sector during 2010-14, the report said.
With 70 per cent of market share (in terms of revenues), generic drugs form the largest segment of the Indian pharmaceutical sector. India supplies 20 per cent of global generic medicines (market exports in terms of volume), making the country the largest provider of generic medicines globally and is expected to expand even further in coming years. Over the Counter (OTC) medicines and patented drugs constitute 21 per cent and 9 per cent, respectively, of total market revenues of US$ 20 billion.
Export of pharmaceutical products from India is likely to exceed the $14 billion mark this year and may reach about $20 billion by 2020, registering a CAGR of about 8%, according to the ASSOCHAM-TechSci Research study.
In present editorial, some interesting facts about Indian retail pharma market are highlighted. (p5) Currently, Retail pharma sector is booming in country. Might be possible in future pharma companies float their own retail counters in agreement with each other. 500 billion-1000 billion Rs Indian retail pharma market is all set to reach a new height in coming years. This growth also includes shifting of unorganized segment to organized segment.
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