Business

Indian Pharma To Reach $450 Bn By 2047: EY-OPPI report

• By Newsdesk
• New Delhi
• Nov 28, 2023

Business

EY Parthenon (EY-P), a strategy consulting firm, collaborated with the Organisation of Pharmaceutical Producers of India (OPPI) to unveil a report titled 'Reimagining pharma and healthcare for India@100' during an OPPI event in Delhi. The report, introduced on Thursday, delves into the growth prospects of the sector based on three crucial imperatives: transformative innovation, reinforcement of manufacturing and quality standards, and the pursuit of sustainable and equitable healthcare.

Between September and October 2023, EY-P and OPPI conducted primary research involving consultations with top executives (CXOs) from leading Indian and global pharmaceutical companies. The aim was to gain insights into the strategic priorities that will shape the industry's future.

Building on this research, the report identifies three key focus areas essential for the Indian pharma and healthcare sector to achieve its ambitious 2047 milestone. These areas encompass unlocking the potential for value-driven research and innovation in the pharma industry, integrating into the global pharma supply chain of the future, and ensuring sustainable and equitable healthcare access for all.

Suresh Subramanian, Partner and National Life Sciences Leader at EY Parthenon India, emphasized the substantial growth of the Indian pharmaceutical sector in recent decades. He mentioned factors such as expanded insurance coverage, cost-effective healthcare initiatives like Ayushman Bharat Digital Mission, and overall macroeconomic growth contributing to enhanced accessibility. The report examines the industry's potential to become an innovation powerhouse, play a crucial role in the global pharma supply chain, and ensure sustainable healthcare access with digitalization as a force multiplier.

The report suggests that India stands on the cusp of an impressive economic transformation, projecting a staggering USD 26 trillion economy by 2047–48 in market exchange rate terms. This transformation is not only about macroeconomic growth but also envisions empowering citizens with a projected per capita GDP over six times higher than the current level.

Simultaneously, the report underscores the remarkable transformation in the healthcare sector, evidenced by a significant increase in healthcare expenditure as a percentage of GDP. From 1.3 percent in 2015, this figure is expected to nearly double to an estimated 2.5 percent by 2025.

Suresh Pattathil, President of OPPI, highlighted the pivotal role of the Indian pharmaceutical and healthcare sector in shaping the nation's future. The report, a collaborative effort by OPPI and EY-P, outlines an ambitious path for the industry aligned with the visionary objectives set during India's 75th Independence Day celebrations under the concept of 'Amrit Kaal'. It explores the pace of reforms and the interplay of factors, including digital technologies, manufacturing, supply chain, and operational efficiency, shaping the industry's progress over the next two decades.