Indian pharmaceutical sector to see strong growth, says Moody's

Moody's Investors Service says that India's pharmaceutical market will continue to grow in the double digits; a rate which is more favorable than most other markets for the industry. However, drug companies in the country could face higher debt levels, as the pharmaceutical sector in India grows, resulting in mergers and acquisitions.

"As consolidation in the industry continues globally, particularly among generic drug companies, Indian firms will increasingly look to become involved in global mergers and acquisitions. We have already seen some Indian companies increasing their pace of acquisitions," says Michael Levesque, a Moody's senior vice president.

"Even if India's GDP [gross domestic product] growth slows or is uneven, the Indian pharmaceutical market would still represent a better growth opportunity than many other geographic markets, because of improving socioeconomic conditions and access to health care, against the backdrop of a rising prevalence of diseases such as diabetes and cardiovascular problems," says Kailash Chhaya, a Moody's vice president and senior analyst.