Indian pharma mart to reach $20 Bn in10yrs

Indian pharma mart to reach $20 Bn in10yrs

By SiliconIndia   |   Thursday, 23 August 2007, 07:00 Hrs
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New Delhi: According to global consulting firm McKinsey, increasing personal incomes, addition of healthcare facilities and deeper penetration of health insurance will see India's pharmaceutical market triple to touch $20 billion in a decade.

The projected growth would see India become the 10th biggest pharmaceutical market - moving up from the 14th position two years ago by replacing Brazil, Mexico, South Korea and Turkey, the McKinsey report said.

The Indian pharma market was $6.3 billion in 2005. At a compounded annual growth rate of 12.3 percent, the absolute growth of $14 billion will be next to the growth potential of the US and China, and in the same league as the growth in Japan and Canada and the UK.

"Five factors will drive the growth of the Indian pharmaceutical market over the next decade. Doubling of disposable incomes and the increase in numbers of middle class households will account for nearly 40 percent of this projected growth as both affordability and access will increase dramatically," said Palash Mitra, partner, McKinsey & Co, and co-leader of the pharmaceuticals & medical products practice.

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