Indian Pharmaceutical Market Potential: From USD27.57 billion in 2016 there is a potential to reach USD55 billion by 2020.
Make in India: “Pharma Vision 2020”
End to end drug manufacturing in India is the key here with “Pharma Vision 2020”.
The government is committed to making India one of the world’s leading destinations for end-to-end drug discovery and innovation by 2020. Its intention to bring a multi-billion-dollar investment in the pharma sector with 50% public funding through its public-private-partnership (PPP) model to enhance innovation capability. ASSOCHAM says, the idea is to push India into top five pharmaceutical innovation hubs by 2020 and establish global presence by launching one out of every 5-10 drugs discovered in India at global level. The Indian government has been very active in boosting growth and investment in pharmaceutical industry. It allows 100 per cent FDI (Foreign Direct Investment) under automatic route (without prior permission) in the pharmaceuticals sector.
Incentive to Pharma Sector: Reduced approval time to new facilities to boost investment.
FDI in Pharma: The existing FDI policy allows 100 % FDI under automatic route (without prior permission) in greenfield pharma and up to 100 % FDI under government approval in brownfield pharma. For Brownfield Pharma 74 % FDI under automatic will continue (without prior permission).
What is ‘Brown Field Investment’?
Brown field investment, also referred to as “brownfield” is when a company or government entity purchases or leases existing production facilities to launch a new production activity.
What is ‘Green Field Investment’?
In a green field investment, a new plant is constructed.
Pharma Product exports in FY16 -USD 16.8 billion which may increase up to USD 40 billion by 2020.
Largest provider of generic medicines: 20% of total generic medicines export in volumes
3rd largest Global generic API merchant: 7.2% Market share in 2016
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