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The India Advantage

India Advantage
Pharma Landscape
Healthcare Landscape
Clinical Research Highlights
Economic Landscape
Demographics Landscape
Travel to India
India Factoids
   
 
   

PHARMA LANDSCAPE

 
The pharmaceutical industry in India is  
Valued at USD 12 billion with a healthy compound annual growth rate (CAGR) of 10-11 per cent (last updated August 2011).
Market poised to grow to USD 55 billion by 2020.
 
   
The Indian generic drug market is expected to grow at a CAGR of around 17 per cent between 2012-13.  
   

India’s healthcare industry market size:

 
   
India's Healthcare Industry Market size  
   
Source: http://www.ibef.org/industry/pharmaceuticals.aspx.  
   

HEALTHCARE LANDSCAPE:

 
Source:http://www.pacifichealthsummit.org/downloads/hitcasestudies/economy/indiahit.pdf  
   
Expenditure  
The Indian healthcare system is mainly funded by out-of-pocket payments, followed by government spending and a small contribution from insurance coverage.  
Total national spending on healthcare is approximately 5.3% of GDP (Approximately USD 45 billion). Private spending accounts for 82% of this expenditure with public spending constituting the remaining 18%, which turns out to be abysmally low (1.3% of GDP).  
   

National Healthcare Spending Expenditure

 
   
National Healthcare Spending Expenditure  
   
The Indian healthcare services industry is composed of both public and private entities.  
Public Sector. The government provides and manages the majority of the services through a hierarchical network of hundreds of thousands of rural village, primary, and community health centers and more than 5,000 hospitals. The primary health centers refer the complex cases into secondary and tertiary centers. Public health services are provided at no cost to patients, with the state taking responsibility for service delivery.
Private Sector. A fee-levying private sector co-exists with public healthcare. It accounts for 82% of the overall health expenditure. The private sector provides services through Allopathic, Ayurvedic, Homeopathic, and Unani practitioners. Most in-patient services are delivered through 1–10 bed nursing homes, which are usually staffed by a single physician.
 
   

Healthcare Infrastructure

 
close to 5,000 hospitals
an average of 89 beds per 100,000 people
a total of ~ 870,000 beds
Population to bed ratio: one bed per ~ 1,123 people.
Hospitals (numbers) – 15,393
 
Public – 4,049
Private – 11,34
Hospital beds - 875,000
Doctors – 592,215
Nurses – 737,000
Dentists – 80,000
Medical colleges – 170
New doctors every year – 18,000
Retail chemist (pharmacy) outlets – 350,000 +
 
   

CLINICAL RESEARCH HIGHLIGHTS

 

Outsourcing of clinical trials to India provides several advantages:

 
Enormous pool of treatment naïve patients
Vast spectrum of disease profiles
Genetically distinct group of population
Hospitals spread across country
Medical colleges and institutions
Skilled English-speaking medical personnel
Cost effectiveness
 
   

Why choose India for your business?

 
Competent workforce: India has a pool of personnel with high managerial and technical competence as also skilled workforce. It has an educated work force and English is commonly used. Professional services are easily available.
Cost-effective chemical synthesis: Its track record of development, particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk drugs.
Legal & Financial Framework: India has a 53 year old democracy and hence has a solid legal framework and strong financial markets. There is already an established international industry and business community.
Information & Technology: India has a good network of world class educational institutions and established strengths in Information Technology.
Globalization: The country is committed to a free market economy and globalization. Above all, it has a 70 million middle class market, which is continuously growing.
Consolidation: For the first time in many years, the international pharmaceutical industry is finding great opportunities in India. The process of consolidation, which has become a generalized phenomenon in the world pharmaceutical industry, has started taking place in India.
 
   
Big Pharma organizations are contributing patients from India for multicentric global trials for FDA / EMEA submissions.  
Seven of the top 10 global CROs have a presence in India.  
   
The above mentioned advantages are an asset and have strengthened the Indian pharmaceutical industry, thus generating a great deal of opportunities for the sector to flourish.  
   

ECONOMIC LANDSCAPE

 
India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. 
Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labor force.
The government has reduced controls on foreign trade and investment. Higher limits on foreign direct investment were permitted in a few key sectors, such as telecommunications. 
The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. India achieved 8.5% GDP growth in 2006, and again in 2007, significantly expanding production of manufactures. 
India is capitalizing on its large numbers of well-educated people skilled in the English language to become a major exporter of software services and software workers. Economic expansion has helped New Delhi continue to make progress in reducing its federal fiscal deficit.
Despite slowing from highs of 8% to 9% growth, India's economy is expected to grow 8.1 percent by 2012 starting from April 1, 2012.
Amid domestic and global liquidity crunch, large domestic savings and corporate retained earnings are financing investment. Sluggish labor market and wealth effects have hit urban consumption. But low export dependence, a large consumption base and the high share of employment (two-thirds) and income (one-half) coming from rural areas has helped sustain consumption.
According to TNS Global Affluent Investigator’s study, India appears in the top five countries where the affluent have more than $1m investable assets on average and has already surpassed major European markets like Germany and France.
 
   
GDP (purchasing power parity): $4.06 trillion*  
Note: data is in 2010 US dollars  
   
GDP (official exchange rate): $1.538 trillion*  
   
GDP - real growth rate: 10.4%*  
   
GDP - per capita (PPP): $3,500*  
Note: data are in 2010 US dollars  
   
GDP - composition by sector*  
Agriculture: 18.5%  
Industry: 26.3%  
Services: 55.2%  
   
*2010 est.  
   
GDP Growth Rate  
   
 
   

DEMOGRAPHIC LANDSCAPE:

 
There are 28 states and 7 Union territories in the country.  
   
Category City (ies)
Metro cities (M)
Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai
Major cities (J)
Ahmedabad, Jaipur, Kanpur, Lucknow, Nagpur, Nashik, Patna, Pune, Surat
Other important cities (C)
Kochi, Visakhapatnam, Vijayawada, Bhopal, Vadodara, Ludhiana, Agra, Madurai, Coimbatore, Faridabad, Varanasi, Rajkot, Jabalpur, Jamshedpur, Allahabad, Amritsar, Indore, Dhanbad, Dehradun, Chandigarh, Jabalpur, Kochi, Ludhiana, Agra, Coimbatore, Jamshedpur, Amritsar, Aurangabad, Mysore
 
   
 
   

Population Matrices

 

S.No.

State/UT

Total population

Males
(%)

Females
(%)

% of India Population

Rural Population
(%)

Urban Population
(%)

1

INDIA

1210193422

51.5

48.5

100.0

68.8

31.2

2

Uttar Pradesh

199581477

52.4

47.6

16.5

77.7

22.3

3

Maharashtra

112372972

51.9

48.1

9.3

54.8

45.2

4

Bihar

103804637

52.2

47.8

8.6

88.7

11.3

5

West Bengal

91347736

51.4

48.6

7.6

68.1

31.9

6

Andhra Pradesh

84665533

50.2

49.8

7.0

66.5

33.5

7

Madhya Pradesh

72597565

51.8

48.2

6.0

72.4

27.6

8

Tamil Nadu

72138958

50.1

49.9

6.0

51.6

48.4

9

Rajasthan

68621012

51.9

48.1

5.7

75.1

24.9

10

Karnataka

61130704

50.8

49.2

5.1

61.4

38.6

11

Gujarat

60383628

52.1

47.9

5.0

57.4

42.6

12

Orissa

41947358

50.5

49.5

3.5

83.3

16.7

13

Kerala

33387677

48.0

52.0

2.8

52.3

47.7

14

Jharkhand

32966238

51.4

48.6

2.7

75.9

24.1

15

Assam

31169272

51.2

48.8

2.6

85.9

14.1

16

Punjab

27704236

52.8

47.2

2.3

62.5

37.5

17

Chhattisgarh

25540196

50.2

49.8

2.1

76.8

23.2

18

Haryana

25353081

53.3

46.7

2.1

65.2

34.8

19

NCT of Delhi #

16753235

53.6

46.4

1.4

2.5

97.5

20

Jammu & Kashmir

12548926

53.1

46.9

1.0

72.8

27.2

21

Uttarakhand

10116752

50.9

49.1

0.8

69.4

30.6

22

Himachal Pradesh

6856509

50.7

49.3

0.6

90.0

10.0

23

Tripura

3671032

51.0

49.0

0.3

73.8

26.2

24

Meghalaya

2964007

50.4

49.6

0.2

79.9

20.1

25

Manipur

2721756

50.3

49.7

0.2

69.8

30.2

26

Nagaland

1980602

51.8

48.2

0.2

71.0

29.0

27

Goa

1457723

50.8

49.2

0.1

37.8

62.2

28

Arunachal Pradesh

1382611

52.1

47.9

0.1

77.3

22.7

29

Puducherry #

1244464

49.1

50.9

0.1

31.7

68.3

30

Mizoram

1091014

50.6

49.4

0.1

48.5

51.5

31

Chandigarh #

1054686

55.0

45.0

0.1

2.8

97.2

32

Sikkim

607688

52.9

47.1

0.1

75.0

25.0

33

Andaman &
Nicobar Islands #

379944

53.3

46.7

0.0

64.3

35.7

34

Dadra & Nagar Haveli #

342853

56.3

43.7

0.0

53.4

46.6

35

Daman & Diu #

242911

61.8

38.2

0.0

24.8

75.2

36

Lakshadweep #

64429

51.4

48.6

0.0

21.9

78.1

 
   

TRAVEL TO INDIA:

 
India has the following five main gateways for international flights:  
Delhi
Mumbai
Chennai
Bengaluru
Kolkata
 
   
India is connected with non-stop direct flights with the US east coast and Chicago, several European and East Asian capitals.  
   

INDIA FACTOIDS

 
Government type: Federal republic

Independence: 15 August 1947 (from UK)

National holiday: Republic Day, 26 January (1950)

Legal system: Based on English common law; judicial review of legislative acts; accepts compulsory ICJ jurisdiction with reservations

Suffrage: 18 years of age; universal

Head of government: Prime Minister Mr. Manmohan Singh (since 22 May 2004)

Location: Southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Burma and Pakistan

Geographic coordinates: 20 00 N, 77 00 E
 
   
Climate: Varies from tropical monsoon in south to temperate in north  
   
Ethnic groups: South Asian populations along with populations of Europe, North Africa, the Horn of Africa, Western Asia (Middle East) and Central Asia are collectively termed as Caucasian race (also CaucasoidEuropid, or Europoid) without regard necessarily to skin tone. (Definition from Wikipedia)
 
   
"Caucasoid", a term formerly used in physical anthropology to refer to people of a certain range of anthropometric measurements, aptly conveys the general physical type of the populations of South Asia
Dravidians (people living in Dravid region, i.e., the area of South India encompassing states of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu as well as the union territories of Lakshadweep and Puducherry, occupying 19.31% of India's area) were classified by Carleton S. Coon in his 1939 The Races of Europe  as Caucasoid due to his assessment of what he called their "Caucasoid skull structure" and other physical traits (e.g. noses, eyes, hair). In his The Living Races of Man, Coon stated that "India is the easternmost outpost of the Caucasian racial region"
Though most lay people in the US did not consider Asian Indians to be white people, but US Supreme Court decided that Asian Indians were Caucasians, though not white
 
   

Languages:

 
English enjoys associate status but is the most important language for national, political, and commercial communication
Hindi is the national language and primary tongue of 30% of the people
There are 21 other official languages: Assamese, Bengali, Bodo, Dogri, Gujarati, Kannada, Kashmiri, Konkani, Maithili, Malayalam, Manipuri, Marathi, Nepali, Oriya, Punjabi, Sanscrit, Santhali, Sindhi, Tamil, Telugu, and Urdu
Hindustani is a popular variant of Hindi/Urdu spoken widely throughout northern India but is not an official language
 
   
Rupees  
15 official languages!  
   

Literacy:

 
Definition: age 7 and over can read and write   
Total population: 64.32%  
Male: 57.06%  
Female: 42.93% (July 2011 est)  
   

Population:

 
1,21,01,93,422 (July 2011 est)  
   

Age structure:

 
0-14 years: 31.8% (male 188,208,196/female 171,356,024)   
15-64 years: 63.1% (male 366,977,821/female 346,034,565)   
65 years and over: 5.1% (male 27,258,259/female 30,031,289) (2007 est.)  
   
Age Structure  
   

Median age:

 
Total: 24.8 years   
Male: 24.5 years   
Female: 25.2 years  
   

Birth rate:

 
22.69 births/1,000 population (2007 est.)  
   
Sex ratio:  
At birth: 1.12 male(s)/female   
Under 15 years: 1.098 male(s)/female   
15-64 years: 1.061 male(s)/female   
65 years and over: 0.908 male(s)/female   
Total population: 1.064 male(s)/female (2007 est.)  
   

Administrative divisions:

 
28 states and 7 union territories*; Andaman and Nicobar Islands*, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chandigarh*, Chhattisgarh, Dadra and Nagar Haveli*, Daman and Diu*, Delhi*, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka, Kerala, Lakshadweep*, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Puducherry*, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, West Bengal