Report Forecasts Tremendous Growth in India’s Pharmaceutical Industry

Boston Analytics (Boston, MA) has released a report examining economic opportunities in the pharmaceutical market in India. Titled, “An Introduction to the Indian Pharmaceutical Industry,” the report examines the elements that will lead to a 13.5 percent compound annual growth rate (CAGR) in domestic production and sales of active pharmaceutical ingredients (API) and generic drugs by 2010 as well as the booming Indian pharmaceutical outsourcing market that is expected to see a 37.5 percent CAGR in that same time span.

The report features a section detailing the factors leading to the internal demand for drugs, including the country’s increasing population, an ever-expanding consumer base in the middle and upper income brackets, the need for improved healthcare infrastructure, and Indian companies’ reverse-engineering skills. Boston Analytics forecasts the domestic pharmaceutical market will reach $10.3 billion by 2010.

The report then examines the Indian outsourcing market in the context of the global pharmaceutical landscape, delving into sub-categories of growth including contract research, contract manufacturing, and other services. India has 75 FDA approved pharmaceutical plants-the most of any country outside the United States. The report estimates India’s pharmaceutical outsourcing market will hit $3.3 billion in the next two years.