Pharma exports to clock 18% growth rate: Assocham

An Associated Chambers of Commerce and Industry of India (ASSOCHAM) study has forecast growth of 11 per cent for the Indian pharmaceutical industry from the current level of Rs 39,000 crore in 2004-05 to Rs 60,000 crore in 2007-08.

The exports would clock a growth rate of 18 per cent to touch volume figures of Rs 30,000 crore by 2007-08, up from Rs 16,000 crore during 2004-05.

The substantial drivers for exports would be the regulated generic drugs markets of the US and Europe in which $65 billion worth of drugs are set to go off patent.

Even the African subcontinent would provide opportunities galore to Indian companies, the study says. It is these patent's expirations of branded products that would give India an edge over other countries, particularly China and Israel, on account of the low production costs.

The Indian companies are expected to grab around 30 per cent share of the increasing generic market in pharma sector world over, said President, ASSOCHAM, Anil K Agarwal.

The industry chambers is also optimistic on National Pharma Pricing Authority going easy on its regulation for fixing drugs prices to industry.

The study also views the new patent regime as one that would increase profitability of MNC pharma companies, in the short run but in the long run, force domestic players to focus on research and development besides setting into play a wave of consolidation.

Indian pharma companies can leverage their strength in terms of low cost of production and availability of quality manpower as domestic production costs are almost 50 per cent less compared to developed countries, according to the study.