What are the major reasons why pharmaceutical companies invest in India?


Every pharmaceutical company is very much interested to create super Hit pharma brands and for this particular purpose, they need to indulge in the best possible type of investment-making decisions. India is one of the fastest possible growing economies in the entire world along with China and the overall growth of the economy has been substantially helpful in encouraging the growth and several other kinds of factors as well. Following are some of the very basic reasons why pharmaceutical companies in India are very much interested to make the best possible investment decisions over here:

  1. Hub of the generic medicines: Indian pharmaceutical sector is considered to be the source of approximately more than 60,000 generic brands across 60 therapeutic categories which will be definitely helpful in providing people with a good understanding of things without any problem.
  2. Manufacturer of the active pharmaceutical ingredient: Indian pharmaceutical industry is also having a very good reputation in terms of manufacturing approximately more than 500 active pharmaceutical ingredients which will be helpful in providing people with a good understanding of things and highlights the scope of the future.
  3. FDI: Indian government has been always at the forefront in terms of providing a hundred per cent FDI under the automatic route of the greenfield, which helps in ensuring that everybody will be able to enjoy immense scope in this particular field. In addition to this particular aspect, the Indian government has also allowed a hundred per cent FDI in brownfield pharma but in the automatic route only 74% is allowed and the rest will be undertaken with the help of the government approval route.
  4. Increase in export growth: Pharmaceutical export of India is also growing at the rate of approximately more than 10% with every passing year which very well highlights by the company should come and invest in this particular nation. The Indian government is very much supportive towards investments in pharmaceutical companies which is the main reason that companies are considering this particular nation as a very preferable one.
  5. Lower cost of manufacturing: The cost of manufacturing in India is comparatively 33% lower than in the United States which very well makes sure that people should focus on manufacturing pharmaceutical products over here only so that marketing efforts can be promoted and ultimately everybody will be able to enjoy the factor of success in the long run without any kind of problem.
  6. Very favourable industrial scenario: Since India is the major exporter of pharmaceuticals approximately it is catering to more than 200+ countries. India supplies approximately more than 50% of Africa’s requirement for genetics, 40% of the generic demand US and other associated aspects. The export-related favourable scenario associated with this particular nation very well highlights the importance of the entire industry without any kind of doubt.

Hence, whenever any kind of pharmaceutical companies is interested to make the best possible investment decisions then focusing on high-value products across the global supply chain with the help of nations like India is definitely a great idea so that everyone will be able to enjoy significant returns in the long run.


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