New Delhi: Driven by the country’s growing economy and population income, the Indian pharmaceutical market will increase significantly from approximately $21 billion in 2013 to $56 billion in 2020, at a compound annual growth rate (CAGR) of 15%, forecasts research and consulting firm, Research & Markets.
According to the company’s report, ‘India Healthcare, Regulatory and Reimbursement Landscape Report 2019’, the medical device sector will also experience steady growth from $7.5 billion in 2013 to $15.3 billion in 2020, at a CAGR of 11%.
In 2012, the main segments were ophthalmic devices (38.3%), In-Vitro Diagnostics devices (9%), hospital supplies (8.9%) and cardiovascular devices (8.1%), the report states.
Joshua Owide, Director of Healthcare Industry Dynamics, Research & Markets, says: “India is an emerging healthcare market that has remained unsaturated due to the limited penetration of healthcare insurance and poor access to healthcare facilities, especially in rural areas. However, an increasing demand for high-quality services, affordability, and a growing medical tourism industry will provide the necessary momentum for the growth of the pharmaceutical market.”
Still, the lack of transparency in the Indian drug regulatory system and weak patent laws are a major challenge for foreign multinational companies attempting to enter or expand in the Indian healthcare market, adds Owide.
In order to increase transparency in the regulatory system, the Ministry of Health & Family Welfare is planning to create the Central Drug Authority (CDA), which will replace the current Central Drug Standard Control Organization. Once the CDA is formed, it will greatly improve the regulatory environment for pharmaceuticals, medical devices and clinical trials, according to Owide.
However, there is also a need for India to improve its healthcare infrastructure in rural areas and expand its universal health coverage, since 80.6% of the population was not covered by any form of health insurance in 2012 — a factor that could hinder further growth of the market.