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How India’s transitioning economy is tipping the global pharmaceuticals market scale
India’s low cost of production has steadily helped the country become an emerging world leader in the manufacture of pharmaceuticals and medical technologies. Worth $6bn in 2005, India's pharmaceutical industry has entered a period of rapid transition and is forecast to be worth $55bn by 2020, according to the Indian Brand Equity Foundation (IBEF).
Such exponential growth is testament to recent government efforts to attract overseas investment away from competitors in China, Korea and Malaysia. The launch of initiatives like the Make in India campaign seek to position India as the ideal manufacturing hub and promises to address issues such as drug and clinical trial quality. The new government is also seeking to bolster research & development investments, with a focus on the rapidly emerging areas of genetics and biosimular drugs as well as encouraging multinational corporations to establish shared services in India, which are starting to benefit from labour arbitrage in value-added services.
Research from the recent 2015 Michael Page Healthcare & Life Sciences Sector Global Insights report reveals that India’s improving position in the healthcare sector is not simply due to cheap supply, but a result of improvements in the overall economy. For example, rising incomes have provided greater access to healthcare, and the increased spend in this area has provided the funds to drive rapid growth in the medical technologies sector.
Additionally, India’s abundant pool of scientists and engineers is also propelling the industry forward, with pharmaceutical and medical technology companies taking advantage of this wealth of specialist talent. We're seeing a particular demand for value-added selling, and companies are seeking to recruit technically-minded employees, particularly those from good B-schools, into sales and marketing roles. As more of a preventative care mindset takes hold, we're seeing a corresponding increase4 in demand for skilled workers in the diagnostics and life sciences fields.
Want to see how India’s skills and salaries compare to other global markets operating in the Healthcare and Life Sciences sector? Download your copy of the 2015 Michael Page Healthcare &Life Sciences Global Insights report today.