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Swot Analysis of Indian Pharmaceutical Industry

The global pharmaceutical market is undergoing rapid transformation. There has been a dramatic shift towards emerging markets as western markets slow down. Global Pharma multinational corporations are looking at new growth drivers such as the Indian domestic market to capitalise on the growing opportunity. The huge potential of the Indian pharmaceutical industry is impossible for global Pharma companies to ignore, given that India will be one of the top 10 sales markets in the world by 2020. Some of the largest Pharma companies in the world have been in the Indian market since the 1970s, and 5 out of the top 10 domestic Pharma companies are already foreign owned, with a consolidated share of 22 - 23%. India's domestic pharmaceutical market has recorded a CAGR of 13.5% over the past five years.(5) With considerable expertise in manufacturing of generics and vaccines, Indian companies have now also started significant research and development (R&D). The Indian economy is growing strongly and healthcare is expanding to meet the needs of a growing population with a changing disease profile. Increase in insurance coverage, aggressive market creation, growth in the income of the Indian population and steady government investment into medical infrastructure has further propelled the growth of the industry, such that it is on the threshold of becoming a competitor of global Pharma companies in some key areas, and a potential partner in others.