US health care reform to benefit Indian generics industry

US President Barack Obama's health care reform was a milestone in the history of the USA's generic drugs industry, and this will benefit the US sector in the long-term growth scenario, says a new report from RNCOS. The US government has now shifted its focus on generic drugs to minimize its health care spending and, thus, opportunities are being created for generics manufacturers.

The generic drugs manufactured in the USA are costly due to high cost of manufacturing and therefore demand for imported drugs is increasing. As majority of these drugs are imported from India, the increasing demand in the USA is benefitting the Indian generics manufacturers. According to the new research on the sector called 'Booming Generics Drug Market in India,' the Indian generics market is forecasted to grow at a compound annual growth rate (CAGR) of around 17% between fiscal years 2011 and 2013.

According to the report, India has emerged strongly as a major generics manufacturer in the world. The Indian generics industry has witnessed a lot of investments in last few years and these investments will help the industry in expanding its manufacturing capabilities. We have also found that India exports a major part of its production to the developed countries and our research provides reliable statistics in this regard.