India is the world’s largest provider of drugs globally.

The Indian pharmaceutical sector is valued at

$US 33 billion(2017 figures). In FY18 we had an export of $US 17.27 billion. Indian companies
received 304 Abbreviated New Drug Application approvals from the US Food and Drug
Administration (USFDA). The Union Cabinet is trying to attract foreign players and a 100 percent FDI
is surely going to boost that initiative. Six pharma parks to be set up in Uttar Pradesh and for that it
was provided with an investment with more than Rs5000 Crore. National Health Protection Scheme
is the largest government funded healthcare programme in the world which is expected to benefit
100 million poor families in the country by providing them with a cover of up to Rs 5 lakh( US
$7732.2) per family per year for hospitalization.

Medicine growth in India is projected to grow 9-12 percent over the next five years, leading India to
become one of the top 10 countries in terms of medicine spending. Discontinuous growth in the
broader healthcare sector is not allowing the confidence to be gained among investors. Four of the
top 10 players, including the market leader are new entrants Rising income levels and enhanced
medical infrastructure have underpinned step-up in growth trajectories. This growth has been
broad-based across therapy and geography segments.

As per a McKinsey review, Indian pharmaceuticals market will grow to USD 55 billion by 2020 driven
by a steady increase in affordability and a step jump in market access. The level of penetration is
supposed to be the guiding factor for this growth. Metro and Tier-1 markets will make significant
contributions to growth, driven by rapid urbanization and greater economic development. In case of
Rural markets, it is expected to grow faster because of step up in penetration levels. The three
required skills for any company to thrive in this competition are marketing excellence, sales force
excellence and commercial capabilities.

Specialty and super specialty therapies will grow faster than the market but the mass therapies will
still continue to be the largest segment. Respiratory and Gastro-intestinal therapeutic areas which
traditionally were treated by general practitioners and consulting physicians are now shifting to
more specialist based treatment due to the rise in patient awareness and affluence.

As of now 80-85 per cent of the market is accounted for by the retail segment. In 2020, too this is
expected to remain the top segment but however the hospitals are supposed to have a share around
20-25% from the current Not only will there be a dramatic rise in infrastructure, the nature and mix
of hospitals and care delivery centres will undergo major shifts. As a result, we expect the hospital
segment of the pharmaceuticals market to grow at well above 20 per cent. Thus the pharma-sector
looks settled with all the factors impacting the industry show a upwards trend in short as well as the
long run making it a lucrative industry.