"The global pharma market is expected to grow at 7% to 8% over the next five years, reaching an anticipated $1.7 trillion in 2020," Azaz Motiwala, IMC founder and principal consultant said, adding that India is going to rank among top ten global players by 2015 itself
Rajkot: According to a study, India will emerge as a leading global player in pharmaceutical industry by 2020, securing a place among the top five major global markets, reports PTI.
City-based Ikon Marketing Consultant (IMC), one of the leading marketing consulting firms in the country, has come out with a study on the pharma sector in India. Describing the ongoing decade as a healthy one for pharma industry, Azaz Motiwala, IMC founder and principal consultant said the major driving factors in this decade are huge domestic demand and increased spending on drugs.
"The global pharma market is expected to grow at 7% to 8% over the next five years, reaching an anticipated $1.7 trillion in 2020," Mr Motiwala said, adding that India is going to rank among top ten global players by 2015 itself.
According to him, Indian consumer currently spends nearly 1% of his total income on drugs and pharmaceuticals, which will not alter significantly in the current decade.
"However, with the rise in the per capita income, the spending is going to be triple (approximately $33) by 2020," Mr Motiwala said.
"The government's long term vision of making quality health care affordable, at least 50% of country's population should be covered by health insurance by 2020, against the current coverage of only 15% and the research indicates that the coverage should increase to 80% within next ten years," he added.
By 2020, nearly 650 million people will have health insurance cover, while private insurance coverage will grow by nearly 15% annually till 2020, he said.
"By 2020, the Indian health care industry is estimated to be worth $275.6 billion and currently 8% of India's gross domestic product (GDP) is spent on healthcare, but the country needs to spend at least $80 billion more in the next five years to meet the targets," the research stated.
According to the study, in the current decade, the spread of diabetes will drive the growth of new therapies in India's pharmaceutical market and by 2020, the disease will assume greater proportions by rising six times. Diabetes presently affects around 50 million Indians, killing about 4 million annually and as per official statistics.
"Treatment for chronic diseases like asthma, cancer, diabetes, heart ailments, osteoporosis and kidney ailments will likely to constitute more than half of India's pharma market by the end of the decade," Mr Motiwala said.
Five new areas, including patented products, consumer healthcare, biologics, vaccines and public health, will capture 45% of the market by the end of the decade to grow to a $14-$18 billion industry by 2020.
Emerging sectors, such as bio pharmaceuticals, bio generics, bio similar and pharma packaging are going to contribute significantly, the study says.
According to the study, metros and tier-1 markets, which have been growing at 14%-15% in the last five years, will drive growth in the industry. They account for 60% of the Indian pharmaceutical market today and look set to continue growing to a market size at $33 billion by the end of the decade, Mr Motiwala said.
Rural markets, on the other hand, will constitute 25% by 2020 up from 20% currently.
"Since the 2008 breakdown in Doha negotiations, the US has put forward a number of ideas in an effort to achieve a breakthrough. However, the reticence of a number of our negotiating partners has left us with very little to show for those efforts," deputy US trade representative Michael Punke stated before the US Senate Finance Committee
Washington: A top US official on Monday blamed the stalemate in the Doha trade talks on India, China and other emerging nations, asserting they were unwilling to shoulder responsibilities reflecting their dramatic rise in the global economic hierarchy, reports PTI.
Since the Doha negotiations began in 2001, the world has changed dramatically, deputy US trade representative Michael Punke stated before the US Senate Finance Committee.
"Above all, we've watched the dramatic rise of emerging economies such as China, Brazil and India," he said.
"The Obama administration, with the strong support of Congress, believes that China and other emerging economies must shoulder new responsibilities to reflect this change. So far, they have been unwilling to do so," Mr Punke told the lawmakers.
It is no secret that the Doha Round of WTO negotiations is floundering, he said, adding that as of next month, WTO members will have been engaged in Doha negotiations for a decade, with no end in sight.
"Since the 2008 breakdown in Doha negotiations, the United States has put forward a number of procedural and substantive ideas in an effort to achieve a breakthrough in the negotiations.
"Speaking bluntly, the reticence of a number of our negotiating partners has left us with very little to show for those efforts," Mr Punke said.
"As we approach a biennial WTO ministerial meeting this December, the time has come for both an honest assessment of where we stand and realistic guidance about where we should go. The WTO operates by consensus, so it will be vital for all WTO members to participate in this effort," the deputy US trade representative said.
"One thing is clear: what we are doing today in the Doha negotiations is not working. That is not a value statement, but a simple assessment of the facts. After ten years, we're deadlocked," he told the Senate Finance Committee.
"The ability of the WTO's collective membership to acknowledge the reality of our situation will be the first test of whether we can devise a credible path forward that will expand market access and strengthen the institution.
"This is important for the Doha negotiations, but also for the broader credibility of the WTO as a forum for trade negations," Mr Punke said.
Islam A Siddiqui, the United States' chief agricultural negotiator, said the Doha negotiations are facing a difficult moment and the gaps on issues related to agriculture, non-agricultural market access (NAMA) and services are wide.
"We are being asked to make significant concessions in the first two pillars of the agricultural negotiations-domestic support and export competition," he said.
"To balance these concessions, a final agreement would have to provide new market access for US products under the third pillar of an agricultural agreement," he asserted.
"Whatever the future direction of the Doha negotiations, I will be a strong advocate for achieving new market opportunities for US agricultural products, including in the markets of emerging economies," he added.