Indian pharmaceutical market will touch $55 billion by 2020, from the current level of $36.7 billion in 2016, growing at a compound annual growth rate (CAGR) of 15.92%, according to a study jointly conducted by Assocham and research firm Indian Institute of Tourism and Travel Management (IITTM).
By 2020, India is likely will be one of the top three pharmaceutical markets by incremental growth and sixth largest market globally in absolute size, noted the study by Assocham-IITTM titled ‘Medical Value Travel (MVT)’.
Indian pharmaceutical market increased at a CAGR of 17.46% during 2005-16, with the market increasing from $6 billion in 2005 to $36.7 billion in 2016.
The production cost in India is much lower than that of US and almost half of that of Europe. It gives a competitive edge to India over others. Growing number of medical facilities are realizing the importance of accreditation and certification leading to many labs and hospitals taking up the same. This could increase the number of accredited facilities in India.
Indian healthcare is expected to rise at a rate of CAGR of 29% during 2015-20 to $280 billion with rising income, greater health awareness, increased precedence of lifestyle diseases and improved access to insurance.
2015 saw the growth of 140% of foreign tourist’s arrival on medical visa from the year 2013, where more than 50,000 people visited India on medical visa. This number rose to approx 1,34,000 in 2015. In fact, the number of foreign tourist’s arrival on a medical attendant visa also doubled from 2013 to 2015, increasing from 42,000 odd in 2013 to more than 99,000 in 2015, adds the study.