In recent years, Indian Pharmaceutical industries have grown at an unprecedented pace and attracted a significant amount of global investment. The pharmaceutical graduates from various repute colleges are now equipped with a strong international base that makes them eligible for lucrative job opportunities in numerous fields. This has further led to the mushrooming of new pharmaceutical manufacturing units in India that is not only creating thousands of job opportunities but also contributing significantly to the Gross Domestic Product (GDP) for that country. However, the rapid expansion of these industries is accompanied by parallel advancements in the quality of medicines produced in India.
Motivation: As pharmaceutical technology develops at an unprecedented pace, companies from developed countries are increasingly enticed to make inroads into the Indian market to gain a competitive advantage. In fact, the foreign investors constitute a significant part of the overall pharmaceutical manufacturing sector investments in India. Moreover, the government of the country is realizing the importance of maintaining a strong and vibrant pharmaceutical industry and is proactively facilitating foreign investment in the pharmaceutical sectors. (For more information on these developments, please see the web site of the India Pharmaceutical Association.)
Types Of Investments: Besides the major private sectors, Indian companies are making investments in several other vertical sectors as well. They include biopharmaceuticals, bio-tech, nutrition, agriculture, food additives, cosmetic and pharmaceutical products, and others. In recent years, Indian pharmaceutical manufacturing companies have been increasingly diversified to include biotechnology and nanotechnology sectors. These sectors promise to be the future of Indian pharmaceuticals and are being developed with the aid of different research facilities and institutions in India and abroad. As of now, Indian pharmaceutical companies are making investments in biotechnology and nanotechnology sectors that provide enormous opportunities for the development of essential medicines for common as well as crucial diseases. Also, this year is the first year that the majority of the Indian pharmaceutical companies have entered the sectors of nutraceuticals, nutrition, cosmetic and FMCG industries.
Growth Potential: With so much happening in the economy, it is not surprising that many companies invest in India. The reasons for such investment decisions are varied, but the common thread is the desire of the company’s management team to make profits in the shortest possible time. India has emerged as one of the best outsourcing destinations for global companies, because of the various advantages that it offers.
Indian economy has made tremendous progress in the last few years, thanks to the government’s focus on improving the overall infrastructure and improving internal processes. As a result of these improvements, it is not surprising that many pharmaceutical companies from around the globe are investing in India. However, in spite of all these positive factors, the Indian economy is still lagging behind in many sectors, mainly because of the lack of adequate investment fund. However, with the government’s renewed attention towards finance sector, and the resultant increase in import duties, this gap is bound to be bridged in a short period of time.
Apart from this, there are a number of other reasons due to which companies from different parts of the globe to invest in India. For example, multinational companies generally invest more in countries that have good quality infrastructure and good population with high-tech, advanced managerial set-ups. India has emerged as one of the best platforms in the world for high-tech, high-value services and products. So, it is expected that the demand for such services will continue to grow in coming years. Companies that make investments in India can expect long-term returns, thanks to the rising economy and investment fund.