Most of us know that India has been doing really great in the pharma sector since last few years. The pharma sector of India is growing at an impressive rate. There are many reasons that have contributed to the success story of Indian pharmaceutical industry, such as low cost of production, skilled workforce, and robust R&D infrastructure. It is needless to mention that the generic medicines are dominating the global market, and it will continue to do so in the years to come.
After witnessing constant growth rate of the pharma manufacturing companies in India, the pharma companies from the western world are also coming down to India in order to set up their manufacturing units. As a matter of fact, the production cost of medicines in India is almost 33 percent lower when compared to that of the United States. So, it is the most obvious reason for the western pharma companies to invest in India.
Deeper look into the benefits enjoyed by the pharma sector of India
So, what is the reason behind the low cost of production associated with the Indian pharma companies? Well, the major reason that has kept the production cost really low is the cheap labor cost. When compared to the labor cost that exists in the Western nations, India’s pharma labor cost is around 55 percent cheaper. So, this huge difference certainly provides a lot of advantage to the pharma companies in India. Moreover, there is no shortage of both skilled and semi-skilled labors in India.
Apart from the labor cost, you need to focus on the aspect of setting up a manufacturing unit. If you set up a pharma manufacturing unit anywhere in the western nation, you will have to spend around 40 percent more! This very aspect explains why there are so many pharma manufacturing companies in India.
Another major benefit that the pharma sector of India enjoys is the aspect of cost efficiency. When your production cost is so low, you can certainly take the risk of trying out new things, which in turn can give rise to new opportunities. In an emerging market like India, there is no shortage of possibilities. Plus, the experienced and skilled workforce that the pharma companies in India have is a boon for this sector. The pharma companies in the western world and other parts of Asia do not possess the same level of technical competence and managerial skills the Indian pharma companies showcase.
As a matter of fact, India holds the second position in the list of largest number of pharma manufacturing plants approved by USFDA (not including the United States). Some people think that the quality of generic medicines produced by the pharma companies in India is not up to the standard. Well, it is absolutely incorrect, because these pharma companies are USFDA certified.
With the passage of time, more players are emerging into the pharma market of India. The rising per capita sales associated with the pharma manufacturing companies in India is adding more fuel to the growth rate of this industry. In 2016, the per capita sales of Indian pharma companies experienced a growth rate of 17.6 percent.
No doubt, it is proving to be highly advantageous for the people of India as well, because now they are able to purchase drugs at much cheaper rates. Basic medical facilities are now within the reach of common people, which in turn has improved the health standard as well. So, if you are planning to invest your money then pharma sector can be an excellent option, particularly the PCD (Propaganda Cum Distribution) model.