What makes the Indian Pharma Companies Globally Attractive? India is taking long strides to emerge as a global superpower in pharmacy. The pharmaceutical industry in India now has a great demand even in the restricted Chinese market. The cases of Indian medicines being smuggled in China are very common now. The cost-effective medicines made in India seems to be attracting many international markets, including China.
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China is expected to expand imports of medicines of Indian origin in the wake of improving bilateral relations. It is time for the Indian pharmaceutical industry to envelope the Chinese market. India accounts for 10% of the global pharmaceutical industry. In the fiscal year 2017, a revenue of $ 30 billion is evident of India’s grasp over the international market. It is a perfect opportunity for India to embrace not only the Chinese market but the international market a well. India is the largest producer of generic medicines globally and accounts for 20% of the global market for generic medicines.
What makes India ‘The Pharmacy of the World?
The pharmaceutical industry in India rides on cost-effectiveness. There are many advantages it offers. Indian pharmaceutical industry enjoys economical land, labour, equipment and other utilities. As compared to the west, production line in India is around 40% cheaper. Additionally, the labour costs in India is around 50% cheaper than the west. The policies of the Indian government and the laid down laws also encourage the Indian pharmaceutical industry.
Why Pharma Companies in India Must Eye the Chinese Market?
Smuggling of Indian drugs and an underground market in China are evident in high demand. Certainly, there’s high demand for low-cost medicines in China for cancer and other diseases. Despite high demand and the growth of pharmaceutical industry in India, Indian medicines are rarely seen in the Chinese market.
However, in May this year, China removed tariff from 28 drugs. These primarily include those essential for the treatment of cancer. Now the Indian pharmaceutical industry must look to benefit from this move. The people of China would have an alternative now and that would be available at much lower costs.
Surprisingly this win-win scenario hasn’t attracted many Indian companies. Indian pharmaceutical companies are happy to play the waiting game. They are primarily concerned about the fact that the field test and approval procedures would be too long. Hence they have adopted a wait and see stance.
The Difference in Regulatory Norms
The regulatory norms for drugs in India and China are different. India has a regulatory system borrowed from the US and UK. China’s regulatory system is that of great deliberation and cautiousness. However, China is working on easing the norms. The changes have been instigated. Once the Chinese regulatory system becomes friendly for the pharmaceutical industry in India, Delhi must look to win the Chinese market.
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