The Indian pharmaceutical industry currently values about Rs 1,00,611 crore, as the industry sector growth is back in track following revival of the economy, according to the latest Economic Survey 2009-10 report.
The pharmaceutical industry in India has leap-frogged from Rs. 1500 crore in 1980 to approximately Rs.1,00,611 crore in 2009-10, thanks to the revival of overall industrial growth to 7.7% during April November 2009-10.
India’s pharma sector now ranks 3rd in terms of volume of production with 10% share of the global pharmaceutical market and occupies 14th position by value, says a news release issued by Press Information Bureau from the Ministry of Finance, government of India.
The Indian pharma industry growth has been fuelled by exports which registered a growth of 25% in 2008-09.
Retails sales in the Indian pharmaceutical market grew by 18% in the month of March 2009, despite fears of stalling industrial growth following the slowdown across economies.
The value growth of Indian pharma market as per secondary sales for the month of Mar 2009 was higher at 18.4%, as compared to 13.3% growth in the month of Feb 2009, according the latest data from ORG IMS, a business intelligence firm.
The value growth as per Mar 2009 MAT once again touched the double-digit mark of 10.1%, with marginally higher growth, as compared to 9.8% as per Feb 2009 MAT.
The value growth in the month of Mar 2009 was higher at 16.8%, as compared to 12.5% in the month of Feb 2009. The value growth as per Mar 2009 MAT (14.1%) was marginally higher as compared to Feb 2009 MAT (13.6%).
In October 2008, sales in the Rs 35,000-crore drug retail market had dipped by 1.2%, the first time in many years, due to consumers shifting to cheaper brands and stockists facing a financial crunch. However, retail sales has gradually strengthened and in February, it rose 13.3%.
Despite the brief slowdown in growth in 2008, ORG had projected the Indian pharmaceutical industry to grow at 15-20% over the next few years. The industry has been growing at 14-15% over the last few years.
Due to economic prosperity, a lot more customers are entering organised healthcare, antibiotics and acute therapies are normally the first line of defence, say analysts.
While India’s metros and class I cities drive the growth tier II cities and rural market add to the growth momentum.
Rising disposable income, improving health infrastructure such as the government’s incentives to set up 100-bed hospitals in non-metro towns, and the general increase in health awareness due to deep penetration of the electronic media are the corner stones of sales expansion.
To promote excellence in pharmaceutical education and research, 6 new National Institute of Pharmaceutical Education & Research (NIPERs) have been set up, in addition to the existing one at Mohali.
The production of petro-chemicals declined by 5.5% in 2008-09 but recorded a positive growth of 0.76% during April-December 2009, registering the impact of the global meltdown.
Rubber and plastic products grew by 25% during April-November 2009. The non-metallic mineral products grew by 6.4% during April-November 2009 as against negligible growth during the corresponding period in the previous year.
The recovery in the industrial sector is measured corroborating both the data on national accounts and the index of industrial production (IIP).
The downward trend observed in the rate of growth of the IIP that spanned almost eight quarters (beginning the first quarter of 2007-08 and continuing through to the last quarter of 2008-09) stands reversed as gleaned from the latest data for the current fiscal.
After reaching a trough of 0.6% during the second half of 2008-09, growth in the IIP revived to a level of 7.7% during April-November 2009-10.
FDI inflow to India, which remained robust in 2008-09 despite the slump in global financial growth have also continued to flow smoothly during the current year so far.
During April-November 2009-10, total FDI inflows stood at Rs. 93,354 crore (US$ 19,379 million) as against Rs. 85,700 crore( US$ 19,791 million) during the corresponding period 2008-09, signifying a growth of 9% in rupee terms and a decline of 2% in US dollar terms.
The divergent patterns in growth rates being attributable to exchange rate changes during the period. Sectors like agricultural services, sea transport and electrical equipments have shown a quantum jump in FDI flows during 2009-10.