14 November 2017 | News
CPhI Global Pharma Index: India’s reputation improving and ranks third most competitive nation
As the CPhI Global Pharma Index shows that the India's efforts to improve its reputation are paying dividends. India emerged successful in a number of key areas and was ranked by international pharma companies as the third most competitive nation globally.
The inaugural CPhI Global Pharma Index (reputation audit) draws on the insights of 500 international pharmaceutical companies from over 40 countries, to rank the major pharma economies out of ten, across a spread of criteria.
These findings are announced as the 11th annual CPhI & P-MEC India 2017, is set to open later this month in Mumbai (27-30th November, 2017). It is a key time for the Indian industry, with the second Indian Pharma Week (November 25-30th, 2017), which will feature seven events covering the entire pharma supply chain in India.
Considering Mumbai’s status as a major pharma hub, CPhI & P-MEC India now runs across two exhibition centres simultaneously; the Bombay Exhibition Centre (BEC) and the MMRDA Grounds (BKC) and has expanded from a three to a four day event.
Encouragingly, India was rated second globally for predicted ‘pharma market growth potential’, with respondents citing high growth domestic markets and expanding manufacturing exports as key drivers. India received a score of 7.0, narrowly behind China (7.2). However, India was rated by pharmaceutical companies as having nearly twice the potential of Western European countries, significantly outpacing even the USA (6.3), Korea (6), and Germany (5.9), who finished third, fourth, and fifth respectively (see figure 1).
Figure 1 – growth potential
In fact, the confidence in India was such that the country was chosen as the third most competitive pharma business destination, with a score of 6.3, behind only the USA (6.9) and Germany (6.6), but ahead of Japan and China (see figure 2).
Figure 2 – overall competitiveness
India’s recent efforts to increase pharmaceutical manufacturing quality also appear to be having an effect. The perception of India’s ‘API manufacturing’ seems to be improving, with the industry believing India is broadly comparable to Italy, Spain, and Korea, though it is still behind tier one nations such as Germany and the USA (see figure 3).
Figure 3 - API
For ‘quality and knowledge’ of pharmaceutical professionals, India (6.2) came notably ahead of China, Korea and Spain, and at a comparable level to that of Italy (6.5). Interestingly, and perhaps highlighting India’s efforts in patented and biosimilar drug development, the country also demonstrated growth in the category of ‘innovativeness’, which remains a key component for the creation of new medicines. In this category, India finished a little behind Korea and France and ahead of Italy and Spain (see figure 4).
Figure 4 – quality of knowledge
A more detailed analysis of only domestic respondents showed that the vast majority, 80%, were either ‘confident’ or ‘extremely confident’ in their business outlook for India’s market in 2018. Notably, the CPhI report also found that 88% of respondents in India ‘were looking to work with foreign partners in 2018’, with an average 50% of sales to foreign companies. Highlighting this increased internationalization, exhibitor numbers have grown by more than 200 companies in the last year, with the 2017 event featuring 1400 exhibitors from over 100 countries.
“Ultimately, the fundamentals of progression in the country are extremely strong, boasting over 24,000 pharmaceutical companies, and 10,500 plants coupled with Government support. Increased investment and an improving regulatory reputation, there is a real sense amongst attendees at CPhI & P-MEC India that the country’s pharma sector is preparing to enter the next stage in its advancement”. Commented by Rutger Oudejans, Brand Director Pharma, and UBM.
According to him, this event is the perfect place for companies to explore the latest trends and innovations where the market has to offer and meet the movers and shakers in the domestic and international pharma machinery, technology and ingredients industries.