Most of us are aware that India has been doing exceptionally well in the pharmaceutical sector in recent years. India’s pharmaceutical industry is expanding at a rapid rate. Many factors have contributed to India’s pharmaceutical industry’s growth, including low production costs, a professional workforce, and a strong R&D infrastructure. It goes without saying that generic drugs already dominate the global market and will continue to do so in the coming years.
Following the consistent growth of pharma manufacturing companies in India, pharma companies from around the world are flocking to India to establish manufacturing facilities. In fact, when compared to the United States, the cost of manufacturing medicines in India is nearly 33 percent lower. As a result, the most apparent reason for western pharmaceutical firms to invest in India is because of this.
A closer look at the advantages that India’s pharmaceutical industry gains
Thus, what is the cause of low production costs associated with Indian pharmaceutical companies? The low labour cost is, after all, the main explanation for the low production costs. As compared to labour costs in Western countries, India’s pharma labour costs are around 55 percent lower. As a result, the pharma companies in India profit greatly from this huge disparity. Furthermore, India has an abundance of both skilled and semi-skilled labour.
Aside from labour costs, you must consider the expense of establishing a manufacturing plant. If you want to start a pharmaceutical manufacturing business in a western country, you’ll have to invest about 40% more! This describes why India has so many pharmaceutical manufacturing firms.
Another significant advantage that India’s pharmaceutical industry enjoys is cost-effectiveness. When the production costs are low, you can afford to take chances and try new stuff, which can lead to new opportunities. There are plenty of opportunities in a developing market like India. Furthermore, the pharma Indian companies have experienced and skilled workers, which is a boon for this industry. Pharmaceutical companies in the Western world and other parts of Asia do not have the same degree of technological expertise and management skills as those in India.
In reality, India is ranked second on the list of countries with the most USFDA-approved pharmaceutical manufacturing plants (not including the United States). Some people believe that the quality of generic medicines developed by Indian pharmaceutical firms is subpar. This is completely false since these pharmaceutical firms are USFDA-approved.
Also with the passing of time, more players are entering the Indian pharmaceutical industry. The increasing per capita sales associated with pharma manufacturing companies in India are fueling the industry’s growth rate. The per capita revenues of Indian pharmaceutical firms increased by 17.6 percent in 2016. Without a doubt, it is proving to be extremely beneficial to the people of India, as they can now buy medicines at much lower prices. Basic medical services are also within reach of the general