What does Indian pharma’s journey to $130 billion mean for the industry?

Pharma sector rewards investors with nearly 70 per cent returns in the last financial year amid pandemic pressure.

With the medical and pharmaceutical sector recording a galloping growth as well as a sizzling performance at the stock markets during the pandemic, it’s hardly a wonder that the industry is set to cross the $100-billion benchmark soon this decade.

The pharma sector has rewarded investors with nearly 70 per cent returns in the last financial year, during which period almost all stocks in the sector posted double-digit growth with Torrent Pharmaceuticals (92 percent), Divis Labs (80 percent) and Dr Reddy's Laboratories (45 percent) leading the pack.

READ MORE ON INDIA & PHARMA:

Indian pharma companies poised for robust growth

Govt boosts self-reliance mantra with PLI schemes for IT hardware, pharma and telecom gear

How Covid-19 fast-tracked pharma innovation in India

India's pharma CMO sector a hotbed for private investors

It’s the latter that has pegged the sector to be ripe for unprecedented growth. According to K Satish Reddy, Chairman of Dr Reddy's Laboratories, the Indian pharmaceutical industry is expected to grow almost by three times to about $130 billion by 2030.

Balance between exports and domestic sales

“If you see, currently it's (pharmaceutical industry) about $42 billion, half between the domestic sales, half between the exports. We expect that it will grow almost by three times in the coming decade, reaching almost $120 billion to $130 billion by 2030. Truly, we believe that we are poised for a tremendous growth in the coming decade," he said.

Reddy, also chairman of Board of Governors of NIPER- Hyderabad, was virtually addressing the 9th Convocation of the institute. The government's encouragement ('Atmanirbhar Bharat' policy), a lot of reforms in the policy to incentivise the industry and thrust being given to innovation, among others, augur well for the industry, he said.

Indeed, the pandemic has brought into light the need for healthcare reforms to promote access to affordable facilities with no bar of socio-economic or geographical limitations – especially in nations like India. This is an opportunity which the Indian pharma industry must utilize to the fullest, undertaking fundamental reforms to get on the track of innovation-based industrial growth.

Covid a litmus test for Indian pharma

As Reddy noted, the Indian pharmaceutical industry worked continuously during the testing times of COVID-19 pandemic second wave to ensure the availability of life saving medicines. During the period, the companies involved in making critical COVID-19 medicines responded very quickly ramping up production, he added.

READ MORE ON INDIA & ATMANIRBHAR BHARAT:

Atmanirbhar Bharat means an India that works for global good

UK businesses betting big on Atmanirbhar Bharat mission

Post-pandemic, India will need to focus on fast-paced development for building Atmanirbhar Bharat

Role of start-ups and innovators in Atma Nirbhar Bharat Abhiyan

Reddy also lauded the efforts of Indian Chemicals and Fertilizers Minister Mansukh Mandaviya and his ministry for providing several valuable interventions over the course of the pandemic which immensely helped the industry ramp up capacities.

Noting that the future of the Indian pharmaceutical industry is dependent on its ability to develop stronger capabilities in innovation and R&D, Reddy said such capabilities which already exist, need to be strengthened further.

Getting global attention

The Indian pharmaceutical sector can contribute to the country through the development of drugs for India-specific ailments which, he said, do not get the global attention they deserve.

Reddy said digital technologies were heralding a big change in the whole spectrum of healthcare – the way patients are treated, the way medicines are supplied to patients and automation in manufacturing.A whole host of opportunities got accelerated during the pandemic, he added.