What Are the Reasons Behind the Success of Pharma Industry in India?

Beyond any doubt, pharmaceutical sector in India has always been at the forefront of serving the nation. It is the eighth biggest pharma market in the world and is expected to cross $55 billion. It is the fourth biggest contributor to the Indian exports and has generated employment for nearly 2.5 million people. The highest FDA approved plants outside the US are from India and the Indian pharma companies have more than 20% of the prescription market share in the US. If you consider the cost of drugs in India, they are quite low in comparison to the western countries.

So, what are the main reasons behind the high growth rate and success of medicine franchise companies in India? Here are some of the top reasons for the good growth and popularity of the pharma sector in India-

• Generic drugs: Generic drugs work in the same way as its branded counterpart in dosage form, strength, safety, route of administration, performance characteristics, quality and intended use. However, the price of these drugs is a lot lower than the ones sold by the bigger brands. Indian pharma companies have the largest approvals of generic drugs and there are 200+ US FDA approved pharma units in India. 

• Export of pharma products: Owing to the cheapest yet qualitative manpower available here, a significant amount of drugs are manufactured which are exported to the US.

• Reverse engineering technology: The Patent Acts and the Drug Policy in India have helped in the development of pharma industry to a great extent. The companies copy and manufacture drugs using different procedures, thus saving expenses on research and development.

• Support of Government: The support provided by the Indian government also proves to be a significant factor for success of any pharma Franchise Company in India. At, present, more than 70% of FDI (Foreign Direct Investment) is allowed in pharma industry. For this reason, it is easy for the pharma companies to set up their business in a hassle-free way.

Along with all the above mentioned reasons, it would not be wrong to say that the Indian IT sector has also been one of the supporting factors for the medicine franchise companies in India. With rising standards of living, the pharma sector is emphasizing on attaining more patent drugs in the coming times. If you own a pharma franchise company in India then you are bound to earn higher profits in the future.