India Rises in Global Pharma with "China+1" Strategy Boost
- India is leveraging the "China+1" strategy to expand its role in global pharmaceutical manufacturing beyond generic drugs.
- Asia's healthcare market, projected to reach $5 trillion by 2030, positions India as a key player due to competitive costs and growing investments.
India is emerging as a key player in global pharmaceutical manufacturing, expanding its reach beyond generic drugs, according to a report by Boston Consulting Group (BCG).
The report highlights the "China+1" strategy, where companies diversify operations beyond China, as a significant driver of investment in India's pharma sector.
Indian pharmaceutical services are reportedly 20% cheaper than those in China, making the country an attractive alternative for manufacturing operations.
“India to capture a larger share of global pharma manufacturing, expanding beyond generics… As pharmaceutical companies look to diversify their investments and manufacturing operations beyond China, Indian players are capitalizing on this opportunity,” the report stated.
BCG identified four major sectors for healthcare investments in the region: health services, pharmaceuticals and biotechnology, digital health, and MedTech.
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Among these, pharmaceuticals and biotechnology have received $9.5 billion in investments, while health services have secured $12.1 billion. Digital health has also experienced significant growth, attracting $4.6 billion, with $3.8 billion invested in the last five years.
The report noted that private equity investments in Asia's pharma and biotech sectors have reached $20 billion since 2018, with India receiving $5 billion of that total. Alongside Singapore, India is recognized as a leading hub for healthcare innovation and investment in the region.
Asia's healthcare market is projected to reach $5 trillion by 2030, accounting for 40% of global sector growth. The report underscores that developing economies in Asia, including India, are poised for significant economic benefits as they invest in healthcare. With competitive pricing and expanding infrastructure, India is well-positioned to capitalize on this transformation, signaling robust growth for its pharmaceutical and healthcare industries.
Edited by Harshajit Sarmah
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