US-China trade war leaves gap for Indian pharma to grow
A data analyst has reported that the current US-China trade war will give India chance to increase their pharmaceutical presence.
A market research company has stated the current US-China trade war has created a gap in the pharmaceutical market and suggest that India will be the ones to fill this space and expand their influence.
GlobalData, a data analytics company, estimates that the Indian pharmaceutical market will fill the gap. They predict that India’s pharmaceutical industry will rise from nearly US$30.8 billion in 2018 to more than US$38.3 billion in 2022.
“This can be seen as a grace period where both China and the US could be looking out for alternatives. The Indian pharma industry can leverage this opportunity to become the partner of choice through strengthening its position in the US market and re-thinking on a long-term strategy for the China market,” says Prashant Khadayate, Pharma Analyst at GlobalData.
The Pharmaceuticals Export Promotion Council of India reports that the US accounts for more than 30 percent of total Indian pharma costs or US$5.82 billion worth of value from 2018-19.
The Council claims that 80 percent of the bulk drug imports in the US come from Chinese and Indian suppliers. India can use the new space in the market to increase their percentage. As the US has been the second largest supplier of drugs to China, making up 15 percent of its drug imports, India’s 0.1 percent is likely to grow as a result.
“China is dependent on the US for the drug formulations import. The Indian pharma industry can take advantage of this situation as it has proven abilities in both drug formulations and the bulk drugs category,” Khadayate continued.