India's Leading Healthcare & Pharma Companies 2023

India’s Leading Healthcare & Pharma Companies 2023 | 21 [ OVERVIEW OF INDIA PHARMACEUTICALS SECTOR ] FDI inflows in drugs & pharmaceuticals secor (in INR bn) Source: Department of Pharmaceuticals FDI IN DRUGS & PHARMACEUTICALS SECTOR FDI in Drugs & Pharmaceuticals sector increased stood at INR 146.7 bn for 9M FY23. The strong growth in FDI since FY21 was mainly on account of investments to meet pandemic demand for therapeutics and vaccines. Also, due to re-alignment of global supply chain, many global players are considering India as alternate investment destination. KEY GROWTH ENABLERS India is at a cusp of demographic t rans i t ion, wi th the count ry projected to become the most populous nation with a large proportion of youth population. The population pyramid of the country, however, is l ikely to undergo a shift with the larger proportion of youth at present transitioning to elderly in the future, owing to declining fertility and increased life expectancies. According to a report published by the Ministry of Statistics and Programme Implementat ion (MoSPI), the number of elderly in the country is likely to increase steadily even as that of the youth begins to decline between 2021 and 2036. According to National Health Profile, the proportion of population over 60 years of age is estimated to be at 11.5% and 15% by 2026 and 2036, respectively, as compared with 8% in 2011. This is expected to change the landscape of the healthcare services in the years ahead. Presently, the key drivers enabling growth in the market are enlisted below: Life expectancy and l ifestyle related diseases: There has been rising instances of lifestyle r e l a t ed d i seases i nc l ud i ng diabetes, obesity, heart diseases and cancer. These trends have effectively reflected in the growth of the respective segments of the pharmaceuticals market – with the chronic disease segment growing at higher than 12%CAGR as compared to 11% domestic pharma growth during FY18 to FY22. Further, it is estimated that, major chronic therapies for diabetics and cardiovascular ailments are likely to grow at 13% CAGR over FY22 – 26 period Improved income and awareness: Per-capita income increase is leading to enhanced standard of living as well as awareness of healthcare products and services. This lead to rise in demand for bet ter qual i ty of heal thcare services, including medicines, vaccines, hospitals etc. This bodes wel l for the pharmaceut icals industry with improved demand for quality products which has higher margins. Dun & Bradstreet