Growth Of Pharma Industry Essay

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INDUSTRY PROFILE The pharmaceutical sector- globally and in India- has been evolving rapidly. This industry has witnessed rapid transformation and growth. Especially in India, the growth has been significant. Starting from a rather small amount of Rs. 10 crore in the late 1940s, the pharmaceutical industry registered a turnover of over 6 billion dollars, as of 2004. The annual growth rate has been over 17%. The Government policies and acts supportive of growth and development of the pharmaceutical industry gave been instrumental in this transformation. The evolution of the industry in India has been studied by several researchers. Using this research as the basis, the evolution can be divided into four significant and principal epochs- 1850 to 1945, 1945 to late 1970s, 1980s to 1990s and 1990s to present time. The most significant two eras of the Indian pharmaceutical industry can be further divided into two parts: Pre-Independence and Post-Independence. Technological factors have furthered the possibility of growth in our country. However, today, the industry seems to be at a crossroad: on one hand, the opportunities are plenty and developed markets are opening up new boundaries and on the other hand, the introduction of the new product patent regime has posed many …show more content…

The organised sector boasts of 250 to 300 companies and these account for 70% of products on the market, with the top 10 firms representing over 30%. However, the small and medium sized companies are estimated at nearly 20,000. The local manufacturers have a huge power in the market. Studies show that over 75% of India’s demand for drugs is met my local manufacturers. The per capita consumption of drugs in India stands at 3 USD is amongst the lowest in the world-especially when compares to fellow Asian countries like Japan (412 USD), and Germany (222 USD) and USA (191

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