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India is poised to capture a bigger share of the global pharmaceutical manufacturing market beyond generics, according to a report by Boston Consulting Group (BCG).
The report highlighted that the "China+1" strategy, which involves companies diversifying operations beyond China, has opened doors for other Asian countries, including India. This shift is driving investments into India's pharma sector, enabling it to expand beyond its traditional focus on generic drugs. "India to capture a larger share of global pharma manufacturing, expanding beyond generics... As pharmaceutical companies look to diversify their investments and manufacturing operations beyond China, Indian players are capitalizing on this opportunity," the report read. As pharmaceutical companies look to reduce reliance on China, India is emerging as a key player in the global supply chain. Indian pharmaceutical services are 20 per cent cheaper than those offered by China, making the country an attractive destination for manufacturing operations. The report also identified four major sectors for healthcare investments: health services, pharmaceuticals and biotechnology, digital health, and MedTech. Of the total investments, USD 9.5 billion has been allocated to pharmaceuticals and biotechnology, while health services have received USD 12.1 billion. Digital health has experienced remarkable growth, securing USD 4.6 billion in investments, with USD 3.8 billion of that amount flowing in over the last five years. The report also mentioned that Singapore and India have emerged as leading hubs for healthcare innovation and investment in the region, attracting significant funding and playing pivotal roles in transforming the sector. Since 2018, private equity investments in Asia's pharma and biotech sectors have totalled USD 20 billion, with India receiving USD 5 billion. The report outlined that Asia's healthcare market is projected to reach USD 5 trillion by 2030, contributing 40 per cent of global sector growth. The report underlined that Asia's developing economies are positioned for significant economic benefits as they continue to invest in healthcare. It offers a detailed analysis of the market from the perspectives of providers, innovators, and payers, identifying key drivers of transformation across the region. India's competitive pricing and growing infrastructure place it at the forefront of this shift, signalling promising growth for the country's pharmaceutical and healthcare sectors. (ANI)
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