As per a report prepared by the IPA, at its current rate of 7-8 percent CAGR, the Indian pharmaceutical industry is expected to grow about USD 80 to 90 billion by 2030.
Indian pharmaceutical industry can achieve this target through a host of measures including regulatory support from government like increase in budgetary allocations for healthcare and promotion of innovation, a pharmaceutical industry body said. Setting a coherent pricing policy framework, simplifying regulatory approval processes, creating a separate Ministry of Pharmaceuticals and dedicated zones for creation of medicines.
Secretary General of Indian Pharmaceutical Alliance, Sudarshan Jain said that government should also aim to increase expenditure on healthcare from about 1.2 per cent to 2.5 percent of GDP in the next five years, and to 5 per cent by 2030. The industry body has also raised the demand for reducing GST on all drugs to a uniform 5 per cent.
Increased accessibility and affordability of healthcare, potential breakthroughs in next-generation innovative products, strong growth in the US market, and increased growth in large under penetrated markets such as Japan and China are some of the ways for the industry to grow, Jain added.
This will lead to a double digit growth of 11-12 per cent, and the industry can grow about USD 65 billion by 2024 and about USD 120 to 130 billion by 2030.