Pharmaceutical Companies in India

 

With the well known history of Ayurveda, India has emerged a hub for manufacturing of pharmaceutical products globally. The pharmaceutical companies in India started to grow in the 20th century but gained momentum with the dynamic environment of the pharmaceutical industry in the 21st century. With globalization, the standards of pharmaceutical companies in India also rose to meet the global benchmarks.

 Key Factors Driving the Pharmaceutical Industry.

1. Cost- effective manufacturing- As the world struggles with costly pharmaceutical products, due to high manufacturing cost. India has provided the world with cost-effective manufacturing solutions due to which India is a favored nation for outsourced manufacturing, pharma exports and third party manufacturing .
2. Skilled workforce- As India is the youngest nation of the world, so is the youth skilled as well. Due to the high population, skilled labour is available at lower costs. This gives the pharmaceutical companies in India an upper edge in lowering the manufacturing costs and increasing the product quality.
3. Strong regulatory rules- the indian government is very strict about the quality products that are manufactured by the indian pharmaceutical industry because of which they have developed a rigorous regulatory framework which all the pharmaceutical companies have to adhere to. This has resulted in quality products that are exported to the world.
4. Research and development-  Due to the Indian landscape, resources are easily available to the R&D department and availability of skilled labour at lower cost has helped the pharma manufacturers of India to maintain the cost effectiveness of a product that can fight competition at a global and national level.
5. Global Reach: Indian pharmaceutical companies have expanded their presence across the globe through exports. India is known as the "Pharmacy of the World" due to its ability to supply affordable generic medicines to a vast number of countries, especially in Africa and Asia, thus addressing global health challenges.
6. Intense domestic market-  As the country homes the largest world population, the domestic demand is also very high. This results in higher innovation and R&D to meet the domestic demands, fulfil the diverse needs and provide all at competitive prices.

Challenges Faced by the Pharmaceutical Companies in India

1. Competitive market- Indian market is a highly competitive market hence for the new players, the competition is not only on the global level but they have to fight domestic competition as well.
2. High R&D cost- As the market is highly competitive, innovation and R&D is the only way a company can get an edge over competitors. To fight high competition, the cost of R&D increases for the companies.
3. Intellectual Property Issues: Changes in patent laws and intellectual property rights have posed challenges for Indian companies in terms of producing generic versions of patented drugs. Striking a balance between innovation and affordability remains a challenge.

 

Contribution of Indian Pharmaceutical Companies to the world

1. Research and innovation- as mentioned earlier, high competition has resulted in their high indulgence in research and innovation. Pharmaceutical companies in India have contributed a lot of formulations and salts that are used world wide. They have developed breakthrough drugs for a range of diseases, including cancer, HIV/AIDS, and tuberculosis, contributing to the global fight against these ailments.
2. Affordable medicines- Due to high population, the skilled labour is  available at lower cost. This helps the pharma companies to reduce their manufacturing cost and provide medicines at very affordable prices to the masses. High population also results in high demand which allows the companies to reduce their per unit cost and manufacture medicines and other medical equipment at a low cost.
3. Vaccine Manufacturing: India has a significant presence in vaccine manufacturing, playing a critical role in global vaccination efforts. Indian companies produce a substantial portion of the world's vaccines, including those for diseases like polio, measles, and COVID-19.
4. Clinical trials- India has become a preferred location for clinical trials due to its diverse and high population. The pharmaceutical infrastructure of India is also very cost- effective to hold such trials.
5. Medical Tourism-  due to cost effective infrastructure, affordable medicines and skilled staff available at lower cost, India has become a very favourable location for medical tourism. A major contribution has come from european, middle eastern, and american people.

 Conclusion 

Pharmaceutical companies in India have made a major contribution in world health care in a way of providing affordable, quality medicines both in generic and branded aspects. Their contributions in terms of affordable medicines, vaccines, research, and innovation have been instrumental in improving healthcare outcomes worldwide. Even after a lot of hardship and challenges that the Indian pharmaceutical industry has to face, these companies have come a long way since their inception. They have not only been providing modern medical supplies but also given a significant contribution to ayurveda, a hidden medical science, now know to the entire world.