Date:03/11/2007 URL: http://www.thehindu.com/2007/11/03/stories/2007110353610400.htm

New Delhi

Pharma sector set for growth: report

Staff Reporter

Pharma sector in the past few years has grown at 1.5-1.6 times the growth of the economy
The rise in disposable income has had a positive impact on healthcare spending

NEW DELHI: India’s pharmaceutical industry is well positioned for sustainable growth and expansion, according to a report by KPMG-Confederation of Indian Industry titled “Indian Pharma Industry - A Continuing Success Story”.

Released here at “Pharma Summit-2007”, it reveals the latest trends and insights into the Indian pharmaceutical industry and is aimed at providing key stakeholders of the pharmaceutical and healthcare market an in-depth analysis of the business prospects.

According to the report, the pharmaceuticals industry has in the past couple of years grown at approximately 1.5-1.6 times the growth of the economy.

The rise in disposable income has had a positive impact on healthcare spending. In 2005, 6.2 per cent disposable income was spent on healthcare compared with 2.8 per cent in 1995.

Also, on the international front, Indian generic drug makers are playing an important role in the global consolidation process and augmenting their market presence across regulated as well as semi-regulated markets through their organic as well as inorganic initiatives. Despite increasing competitive intensity on account of continued pricing pressure, several significant opportunities are being leveraged by Indian generic players.

Contract research and manufacturing services is becoming one of the most promising opportunities for the Indian pharma industry, says the report.

Pharmaceuticals KPMG (India) head Hitesh Gajaria said: “The Indian pharmaceutical industry is now well-positioned for sustainable growth.”