29 February 2024

Trendy Texts

Business, World, Economy, Tech, Sports News

Indian Pharmaceutical Industry

Indian Pharmaceutical Industry will surpass $57 Billion by 2025

According to a CareEdge Ratings evaluation, the Indian pharmaceutical business is anticipated to be worth $57 billion by fiscal year 2024-25. During this time period, the industry is expected to increase at a rate of 7 to 8%. This optimistic growth prediction reflects the Indian pharmaceutical sector’s ongoing expansion and promise.

In the preceding fiscal year, which ended in March 2023, the industry grew by 5%, reaching a total value of $49.78 billion. This expansion can be ascribed to a variety of factors, including increased healthcare spending, a growing population, rising chronic diseases, and domestic and foreign demand for affordable medicines.

The Indian pharmaceutical industry is a key player in the global pharmaceutical market and has been recognised globally for its production skills. With a continued emphasis on research and development, innovation, and the adoption of sophisticated technologies, the industry is well-positioned to maintain its growth trajectory and contribute to the country’s and beyond’s healthcare requirements.

The Indian pharmaceutical industry has grown significantly over the years, rising from $35.41 billion in FY18 to $49.78 billion in FY23, according to the research agency. According to the agency, the business will continue to develop and will be worth $57 billion by FY25.

Several variables will contribute to the expected growth in FY25. In terms of exports, the industry is predicted to increase at a rate of 6-7 percent, demonstrating ongoing demand for Indian pharmaceutical products in overseas markets. Furthermore, the domestic market is predicted to see an 8-9 percent increase in sales volume, highlighting the country’s ongoing desire for pharmaceuticals.

These growth estimates point to a bright future for India’s pharmaceutical industry, both in terms of domestic consumption and export possibilities. The industry’s ability to address the population’s healthcare demands, combined with its competitive advantage in terms of cost-effective production, positions it well for future expansion and success.

Indian Pharmaceutical Industry

According to CareEdge Ratings, the Indian pharmaceutical industry’s export growth was considerably lower in FY23, with only a 3% gain. This slower increase can be linked to a variety of issues, including the impact of the Russia-Ukraine conflict and a lack of foreign currency in several African countries, which hampered pharmaceutical product sales to emerging markets.

In comparison, the domestic pharmaceutical market grew at a rate of 7% during the same time period. This reflects the ongoing demand for pharmaceutical products in India, which is being driven by reasons like population growth, higher healthcare awareness, and enhanced access to healthcare services.

Despite the hurdles in the export market, the rise in the local market demonstrates the Indian pharmaceutical industry’s endurance and strength. While the industry addresses global market dynamics and strengthens its position in international markets, the domestic market provides a strong foundation for growth and adds to the industry’s overall good outlook.

Also read: Best high protein foods: 8 foods for high protein meal

Growth of Indian pharmaceutical industry in Covid

According to a CareEdge Ratings assessment, the Indian pharmaceutical industry’s operating margin is predicted to rebound to pre-COVID-19 levels and improve in FY25 compared to FY23. The sector is currently confronted with issues such as increased input prices, rising freight costs, prolonged delivery timeframes, and competitive pressures in the US generics market, all of which have reduced the operating margin.

However, the report identifies numerous encouraging signals for the industry’s future. Raw material prices are stabilising, freight rates are normalising, and pricing pressure in the US generics market is reducing, according to the report. These elements are projected to contribute to the operating margin’s recovery and improvement in the next years.

The predicted improvement in operating margin of 100-150 basis points implies a bright prognosis for the Indian pharmaceutical industry’s profitability. The industry is expected to regain strength and enhance profits in the future as it navigates through the obstacles and adjusts to changing market conditions.

The previously indicated factors, in accordance with CareEdge Ratings, are estimated to lead to an increase in operating margins of between 100 and 150 basis points between FY24 and FY25 compared to FY23. This increase in operating margins can be ascribed to factors such as stabilised raw material prices, normalised freight rates, relieving pricing pressure in the US generics market, and the industry’s emphasis on releasing speciality and niche goods in the US market.

According to the research, the credit profile of Indian pharmaceutical companies has remained constant. This stability can be ascribed to the company’s high profitability and limited reliance on debt. The analysis anticipates this tendency to continue, indicating a good picture for the industry’s creditworthiness.

In general, the predicted growth of operating margins and the steady credit standing of Indian pharmaceutical companies show favourable prospects for the profitability and financial stability of the sector. As the industry navigates hurdles and capitalises on development possibilities, it is prepared to preserve its stability and strengthen its market position.