New Man International Journal of Multidisciplinary Studies (ISSN: ) Mohd Azhar-Ud-Din Malik Research Scholars Jiwaji Unversity Gwalior (M.

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1 Abstract 8. INDIAN PHARMACEUTICAL INDUSTRIAL CONTRIBUTION AND COMPETITION Mohd Azhar-Ud-Din Malik Research Scholars Jiwaji Unversity Gwalior (M.P) Biotechnology has become a source of earning for many entrepreneurs and investors, as for as creating self-sustaining profitable companies. There are about 400 private and 600 public biotechnology companies worldwide. The pharmaceutical industry in India ranks third in the world in terms of volume and 14 th in terms of value. Government is focusing to increase the growth of this industry but the lack of patent protection made the Indian market undesirable to the multinational companies that had dominated the market. Key words: pharmaceutical industry, rank, growth, patent protection, Indian market, dominated. Introduction The government has started to encourage the growth of drug manufacturing by Indian companies in early 1960s, with the patent act in 1970, India is the largest provider of generic drugs, accounting 20% of global experts in terms of volume. In India there is a large pool of scientist and engineers who have the capacity to steer the industry ahead to a higher level. At present 80% of the antiretroviral drugs used globally to combat AIDS are supplied by Indian firms. Objectives 1. To know position of Indian Pharmaceutical industry in the world. 2. To asses FDI position in India. 3. To highlight different initiatives taken by the government to expand the pharmaceutical industry in India. Methodology This study carried out is analytical and empirical in nature. The study is based on published sources of data collected from various reports and publications of Government of India, RBI, IMF relating to foreign direct investment, economic journals, books, newspaper, magazines, internet and other previous research etc. Market Size It is expected that Indian Pharmacy industry would grow over 15 percent per annum between 2015 and 2020, will outperform the global pharma industry,which is set to grow to an annual rate of 5 per cent between the same periods. India will emerge as the sixth largest pharmaceutical market globally by absolute size, as the market is expected to grow to US$ 55 billion by

2 New Man International Journal of Multidisciplinary Studies (ISSN: ) India leads over China in pharmaceutical experts with a year on year growth of 11.4 per cent to US$ billion in FY , according to the data from Ministry of Commerce and Industry. The growth of pharmaceutical products increased by 0.80 per cent year-on-year to US$ 1, million. Also the drug approvals have doubled to 201 in FY from 109 in FY , given by the U.S Food and Drug Administration (USFDA) to Indian companies. Indian biotechnology industry comprising bio-agriculture, bio-pharmaceuticals, bio- growth services, bio-informatics and bio- industry is expected to grow to an average rate of around 30 percent a year and US$ 100 billion by Export Markets and its Prospects There has been tremendous growth in pharmaceutical industry during of increase in the number of approvals and access to new markets. The export grew by 9.5% during as against 3.2% and 1.9% during previous years. After decline in the Abbreviated New Drug Applications(ANDA) approvals the number of US FDA approvals for ANDAs have increased near about 46% from 385 approvals during 2014 to 564 approvals during But according to CMIE data the growth is expected to slow down to 4..9%4.9% during on account of decline in the number of block buster drug going of patent during CY17-CY20. Export share of key market The share of Indian export market has increased from 34% during FY14 to 39% during FY16. The key emerging markets which are Brazil, Nigeria, Kenya, South Africa, Russia and Vietnam has remained stable at 15% during the same period. Of the top 25 destinations of India s Pharmaceutical Export, in which North and South America has contributed about 40% but USA remains the top destination as with a share of 32.59%. South Africa, Kenya and Australia have grown exceptionally. Chart1.1 Indian Pharma Exports during FY 16 21% 18% 2% 19% 40% North and South America Europe Africa Asia Oceania Source: CMIE 38

3 Scenario of Indian FDI FDI forms one of the strong avenues of strategic investments in India and there is a considerable growth in such investment during the last three years. FDI has increased in India with a considerable improvement from $ 30.9 bn during FY15 to $40 bn during FY16 registering growth of about 29%. Fallowing chartshows FDI scenario in India. Chart 1.2 y-o-y change in FDI inflow 80% 60% 40% 64% 20% 0% -20% 27% 29% 8% % -17% % -40% -60% Source: IMS Health & compiled by CARE The drugs and pharmaceutical attracted cumulative FDI inflow worth US$13.85 billion between April 2000 and march 2016 according to data released by the Department of industrial policy and promotion(dipp). The Indian Pharmaceutical Industry has made a mark in the global pharma market. The FDI in the sector has decreased about 50% TO $ 754 bn during FY16contributing to just about 2% majorly on account of warning letters, bans and alerts issued by USFDA and ban by European EMA. 39

4 Chart 1.3 % of Total FDI in FY 2016 Real Estate Pharma Energy Telecom Hotel and tourism Chemical Auto Trading IT genral services 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Source: IMS Health & compiled by CARE Major investments in the Indian Pharmaceutical sector are: India s largest drug maker Sun Pharmaceutical Industries Limited has made an agreement with Japan s Mitsubishi Tonaba Pharma Corporation to market 14 prescription brands in Japan. Lupin Limited India s third largest drug maker file its first biosimilar Etanercept for approval in Japan, world s second largest drug market in Pink Blue Supply Solution pvt. Ltd, a clinical supplies provider has raised Rs. 1.5 crore (US$ 0.22 million). MPP(The Medicines Patent Pool) has signed a licensing agreement with six Indian drug makers for the generic manufacturing of four antiretroviral (ARV) and hepatitis c direct acting antiviral drug. One of the major pharmaceutical and biotechnology companies in India, Cipla Ltd., has Acquired two US based generic drug makers, which is expected to strengthen Cipla s business. Initiatives taken by government The Government of India unveiled Pharma Vision 2020, its aim is to make India a global leader in end to end manufacturer. The mechanism Drug Price Control by the government is a good move in this regard. Government has also raised the FDI for brownfield projects to 74% under automatic route. 40

5 By 2020 India is expected to rank among the top five pharmaceutical innovation hubs. IPA (Indian Pharmaceutical Association) plans to prepare data integrity guidelines which help to measure the quality of Indian companies. Pharmaceutical Department has set up an inter-ministerial co-ordination committee which would periodically review coordination and trace the constrains faced by the pharmaceutical companies. Conclusion The Indian pharmaceutical industry has witnessed tremendous growth in recent years. The market size of the industry is increasing with a great pace. Many of the companies have reached to the top most level in the world and the demand side is increasing according to their performance. Today government is also playing a good role to lead the industry forward. References 1. Agarwal, S.P., Gupta, Ashwani; Dayal, Technology Transfer Perspectives in Globalizing India (Drugs and Pharmaceuticals and Biotechnology) Journal of Technology Transfer. 2. Chen, Zhiqi; McDermott, Alison International Comparisons of Biotechnology Policies, Journal of Consumer Policies, December Giesecke, Susanne, The Contrasting Roles of Government in the Development of Biotechnology Industry. 4. Vaidyanathan, Geetha, Technology Parks in a Developing Country: The Case Study of India, Journal of Technlogy Transfer, June