Indian Pharma industry worth US$6 billion, growing at 10%: KPMG

New Delhi, June 8 (UNI) The Indian pharmaceutical industry is currently worth 6 billion dollars in a global industry worth 650 billion dollars and is growing at ten per cent, compared to the global industry rate of seven per cent, a report said here today.

According to the report launched by KPMG, India now has the potential to become the region's hub for Research&Development (R&D), manufacturing and exporting, with the Indian pharma industry on way to becoming a major player on the global scene.

Much of the impetus behind India's fresh challenge for a greater share of the global industry is driven by last year's introduction of product patents.

For the previous 25 years, patents were only granted on processes --a decision which saw many Multi-National Companies (MNCs) abandon the sub-continent, but which resulted in India becoming a leading player in the market for generic medicines.

Commenting on the findings, KPMG's Pharmaceuticals Global Head John Morris said, ''The generics business remains at the heart of everything India does well and so it should, considering that India accounts for 22 per cent of the global generics market. Bearing in mind that 65 billion dollars of prescription medicines in Europe and the US are to lose their patents in 2007-08, India is ideally positioned to sweep up much of that new business.'' However, he added, that ''the opportunity now exists for India to become so much more than just a generics player.'' He said, ''The expansion of India's patent system to cover products as well as processes has already started to bring the MNCs back into the fold. R&D spending should now be ratcheted up significantly and rapidly.'' Elaborating further on the report, KPMG Pharmaceutical India Sector Leader Sanjay Aggarwal said, ''Solution to India's market development lies with proactive measures such as public-private partnerships, and encouragement of R &D.'' Within the KPMG report, one industry figure states that, despite the recent improvements in the Indian market infrastructure, many people still ''talk about India but invest in China''. Much of this is attributed to shortcomings in the current Indian regulatory environment (India still offers no data protection for example whereas China does) and domestic pricing issues.

The aim of the Indian industry - and of the government - are ambitious but will require a strong pricing environment if the Indian people are to access the life-saving and innovative medicines they need. Industry leaders will have to work with the government on issues of affordability to point out that price controls are limited in their ability to increase access to new and effective treatments.

KPMG is the global network of professional services firms of KPMG International, and has offices in India in Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Kolkata and Pune and services over 2,000 international and national clients.

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