Indian pharmaceutical market, which is expected to grow to $55 billion by 2020, is likely to create 45,000 new jobs next year.

According to the McKinsey report “Indian Pharma 2015 – Unlocking Potential of the Indian Pharmaceutical Market” this industry, with tremendous growth opportunities unfolding, has the potential to grow more than twice in the next six years, from a projected market growth of $24 billion by 2015 to $55 billion by 2020.

Metro and Tier-I markets would make significant contributions to this growth, driven by rapid urbanisation and greater economic development. Rural markets will grow the fastest driven by step-up from current poor levels of penetration. The hospital segment will increase its share and influence, growing to 25 per cent of the market in 2020.

These observations were made by pharmaceutical professionals at the National Seminar organised by the Indian Institute of Health Management Research (IIHMR) University, Jaipur, last week, in association with the Association of Pharmaceutical Teachers of India (APTI), and Indian Pharmaceutical Association (IPA) Rajasthan State Branch.

Dr B P Nagori, Vice President, APTI, quoting a PwC study, said the Indian pharma industry is likely to be in the top 10 global markets in value terms by 2020. Credit for this development would go to growth factors such as new market creations, growth in the SME sector, enhanced medical infrastructure, pace of innovation in business models, and rising consumer incomes, among others.

But the industry would also face challenges like the need for better talent, rising customer expectations and restricted discovery and developing process, he added.

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