India’s Pharma Industry Set to Quadruple by 2020
Monday, October 25, 2010
The Indian pharmaceuticals market looks poised to grow to $55 billion in 2020, according to a new McKinsey & Company report – “India Pharma 2020: Propelling access and acceptance, realising true potential”. This will be a quadrupling of the market from the $12.6 billion the industry made in 2009. The report states that the pharma market has the further potential to reach $70 billion by 2020 if aggressive growth efforts are embraced.
Affordability will result in half of the forecasted growth, with rising incomes and increasing insurance coverage lowering the cost of drugs. Increases in income will result in an additional 73 million people in middle and upper class segments, while 650 million people will have health insurance by 2020. While private insurance will grow by 15 per cent by 2020, the majority of people will be provided insurance through government-sponsored schemes which focus on the ’bottom of the pyramid’ segment of society.