Indian pharmaceutical industry: new strategies in a changing world

The days when the Indian pharmaceutical industry was synonymous with cheap generic drug production are passing, according to a new report from Espicom Business Intelligence. While generics continue to play a major part in the industry's success, many companies have started down the long road of drug discovery, novel product development and pharma services.

With high-quality research, low-cost manufacturing facilities and educated personnel, the Indian pharmaceutical industry presents both a competitive threat and partnering opportunities.

A significant international industry India is the world's fourth largest producer of pharmaceuticals by volume, accounting for around 8% of global production, notes Espicom. In value terms, production accounts for around 1.5% of the world total. The Indian pharmaceutical industry directly employs around 500,000 people and is highly fragmented. While there are around 270 large R&D based pharmaceutical companies in India, including multinationals, government-owned and private companies, there are also around 5,600 smaller licensed generics manufacturers, although in reality only around 3,000 companies are involved in pharmaceutical production. Most small firms do not have their own production facilities, but operate using the spare capacity of other drug manufacturers.