The field of pharmaceutical engineering has seen tremendous development in the last two decades. Numerous pharmaceutical companies from all over the world are showing an increasing interest to invest in Indian pharmaceutical manufacturing sector due to the huge market potentials. These companies believe that there is huge scope for profits in the field of biotechnology, nutrition, cosmetics, pharmaceutical drugs and generic drugs. The key reason behind this interest of the western pharmaceutical giants is the rising health-related costs, availability of supply and other benefits derived from the strong medical infrastructure in the country.
The recent global financial meltdown has shaken the pharmaceutical world, forcing drug makers to rethink their strategies and business strategies. Even the western investment houses like Wal-mart, Citi and others have shown a renewed interest in the Indian pharmaceutical sector. These major companies believe that India can provide adequate infrastructure facilities and ample human resources to grow their business successfully. According to media reports, several prominent US companies like Wal-Mart, Citi and others have planned to set up new manufacturing units in India within the next few years. These firms believe that the market scenario in India can provide sufficient room for profit growth in the long run.
The market scenario in India is highly attractive as it offers huge potential in the field of biotechnology, nutrition, cosmetics, healthcare, etc. Indian Food and Drug Administration (FDA) have been successful in processing food and cosmetic products using GMP standards. Due to increasing demand for health-care products in the country, the number of drug manufacturing laboratories have also been increased in the last decade. The increasing number of drug producing units has led to rise in demand for clinical trials, research and development activities, manufacturing and commercialization activities. The market potential of these sectors can provide a significant amount of income to pharmaceutical developing countries.
The western companies are also investing in the research and development of essential vaccines required to fight deadly diseases. These vaccines can help save the mankind from the devastating clutches of these diseases. A large number of diseases including AIDS, HPV, rheumatism, typhoid, anthrax, shingles, bird flu and several other disease has been killing people around the world. If the vaccines and drugs developed by these companies are able to save millions of lives, then it is considered to be a very reasonable investment.
Besides drugs and vaccines, the developing countries need medical equipment, infrastructure and staff to develop cures and treatments. For this purpose, they are also looking forward to develop advanced diagnostic and therapeutic technologies. In the past, hospitals in developed nations didn’t have sophisticated diagnostic machines and surgical tools. But with the development of information technology, these hospitals are now trying to modernize their infrastructure.
Many companies are investing in India as it has a great potential for growth. Moreover, the Indian government is also facilitating the foreign investors. There are no barriers to the foreign direct investment coming into the country. As per the rules and regulations, there is no investment exit strategy involved. So the pharmaceuticals develop at will, leaving the country to develop at its own pace. However, the western investment in India can only help in the long run.