Indian pharma market to reach $56bn by 2020
The Indian pharmaceutical market is expected to increase significantly over the next seven years from US $21 billion in 2013 to $56 billion in 2020, according to a new report. This is largely due to the country’s growing economy and population income.
The Indian medical device sector will also experience steady growth from $7.5 billion in 2013 to $15.3 billion in 2020, at a CAGR of 11%. In 2012, the main segments were ophthalmic devices (38.3%), In-Vitro Diagnostics devices (9%), hospital supplies (8.9%) and cardiovascular devices (8.1%).
“India is an emerging healthcare market that has remained unsaturated due to the limited penetration of healthcare insurance and poor access to healthcare facilities, especially in rural areas. However, an increasing demand for high-quality services, affordability, and a growing medical tourism industry will provide the necessary momentum for the growth of the pharmaceutical market.”
Joshua Owide, Director of Healthcare Industry Dynamics.
The biggest challenges for international companies attempting to enter or expand in the Indian healthcare market are the lack of transparency and weak patent laws in the regulatory system. Plus, there is a need for large improvements on healthcare infrastructure in rural areas and an expansion on universal health coverage.
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