New Delhi: Driven primarily by rising population and increasing middle class income, annual drug sales in the country are projected to grow at 8%, which is much higher than rest of the world, says a report released by Deutsche Bank on ‘India’s Pharmaceutical Industry on Course for Globalization’.
With drug sales expected to touch 20 billion euros by 2015, growth in India is estimated to be higher than that for Germany (more than 5% per annum) and the entire world (over 6%) though its share in world pharmaceutical sales will rise only marginally to 2%.
According to the report, the country is becoming a “major pharmaceutical location” on account of low costs, qualified staff and extensive production and research units. “Drivers of growth are the growing population...as well as the larger number of older people with markedly higher demand for medicines. Also increase in middle-class households with considerably higher incomes at their disposal than the population on average,” the report added.
Indian pharmaceutical companies would continue to expand their presence in international markets, especially American and European. The industry is reorienting itself and focusing on self-developed medicines and contract research and production for western drugs companies.