Ailing Indian pharma industry

What is the issue?

India’s champion generic drug industry which has a global presence is losing its sheen.

What are the causes?

• Indian pharmaceuticals are heavily dependent on the US market.
• Tightening regulations and inspections by international drug control regulators like the US Food and Drug Administration (FDA) is a hindrance.
• FDA has streamlined its processes and is now fast-tracking approvals for new generic drugs which is a good thing.
• However it means that competition in the marketplace has stepped up dramatically as well as prices are getting competitive.
• Indian drug companies are also uncertain due to speculations with Trump's emphasis of manufacturing in America.

What are the desired actions?

• Indian companies should start making more niche creations that will give them better pricing leverage.
• Need for stepping up R&D spending.

Source: The Hindu - BussinessLine