THE INDIAN PHARMACEUTICAL INDUSTRY AND A CRITICAL ANALYSIS OF RANBAXY’S STRATEGIES TO BUILD A GLOBAL PRESENCE
(I) THE INDIAN PHARMACEUTICAL INDUSTRY – A GENERAL INTRODUCTION
The pharmaceutical industry is currently acknowledged as one of the leading industries in India. The growth rate has been significant and has recently accelerated substantially due to new products launched in recent years. Almost 3000 new products were launched between 2002 and 2004, with sales estimated at US$280mn.The domestic pharmaceutical output has increased from Rs.4bn in 1970-1971 to Rs.290bn in 2003 at a compound growth rate of 13.7 percent per annum.
India is ranked among the top 15 drug manufacturing countries in the world. Globally, the output of India ranks 4th in terms of volume and 13th in terms of value.12 The Indian pharmaceutical industry, however, only has a one percent share of the world pharmaceutical export market. India’s export market is expected to strengthen substantially in the coming years and how a domestic player like Ranbaxy is expaning its wings abroad the this project attempts to study.
At the domestic level, the Indian pharmaceutical industry is self-reliant in drug manufacture, evident in its ability to meet 95 percent of the country’s pharmaceutical needs. One vital characteristic of the industry is that drug prices in India are arguably amongst the lowest in the world.
Before we do a SWOT Analysis , let us understand the current governmental framework that shapes the policies for the industry.
Drug Policy in India Of 1986
The Drug Policy of 1986, which was titled "Measures for Rationalisation, Quality Control and Growth of Drugs & Pharmaceuticals industry in India" was evolved under the dynamic guidance and leadership of&n ...