The Pharmaceutical Industry in India at The Current Moment and Challenges

The Indian pharmaceutical industry has witnessed significant growth over the last couple of years. The country has become one of the leading destinations for generic drugs, and the pharma supply chain in India plays an integral role in this growth story.

However, India's pharma sector, or you can say that the pharma supply chain in India, is currently facing challenges such as getting access to international markets, land acquisition issues, and poor law and order situation.

With immense opportunities in the global market, there are chances that these challenges can be overcome, which will open up new vistas for the pharma supply chain in India and global players who are looking to invest in the industry here.

Introduction

The pharmaceutical industry is like the backbone that supports its growth in any country. The pharma supply chain in India is a fast-growing industry that contributes to a big part of a nation's overall national healthcare system.

In developed countries, it is estimated that 12% of their annual budget is spent on health care. With more than a 50% increase in population over the last decade, India has an opportunity to grow as a nation when it comes to healthcare expenditure. Yet our country still struggles with providing affordable quality medicines to all its citizens.

Present Scenario

The pharmaceutical industry is a major sector of India's economy. The Indian pharmaceutical industry grew at an average rate of 15% annually from 2000 to 2010.

It is ranked 4th largest producer in the world and constitutes 10% of GDP. Growth has been on an upswing in recent years, growing by 11% annually from 2010–11 to 2020-21.

Future Outlook

The supply chain is one of our core functions in a fast-changing environment. We have to ensure that we meet today's demand and support tomorrow's goals by aligning our supply chain and manufacturing functions.

The Pharma supply chain in India is going through fundamental changes that redefine how organizations manage their business. With increasing cost-consciousness and pressure on margins, players across all segments adopt a 'just-in-time' strategy for working capital management.

Key Takeaways

There is a clear move toward Formulation Development Outsourcing (FDO) for nearly all pharmaceutical industry segments. Factors such as these are driving this transition -

1. High cost of manufacturing drugs in India
2. Shortage of qualified pharmacists
3. Increased demand for innovative products
4. Focus on generic drugs due to patent expiry and price competition from generics players
5. Increasingly complex formulations that require expertise to develop/manufacture
6. Regulatory approvals are becoming more stringent every passing year, thereby increasing the time to market.

The Pharma Supply Chain in India has undergone a sea change over the last few years. And the change Pharma leaders are looking for is Free Trade Warehousing Zones which help a plethora of Contract Manufacturers, Distributors, Suppliers, Consolidators, Importers, and Exporters. If you are looking to explore more about this concept, visit www.onnsynex.com.

To know more click at Pharma Logistics Companies in India