SWOT Analysis of Indian Pharmaceutical Sector

SWOT Analysis of Indian Pharmaceutical Sector:

Strengths

• Cost Competitiveness
• Well Developed Industry with Strong Manufacturing Base
• Well Established Network of Laboratories and R&D infrastructure
• Access to pool of highly trained scientists, both in India and abroad
• Strong marketing and distribution network
• Rich Biodiversity
• Competencies in Chemistry and process development

Weakness

• Low investments in innovative R & D
• Lack of resources to compete with MNCs for New Drug Discovery Research and to commercialize molecules on a worldwide basis.
• Lack of strong linkages between industry and academia.
• Lack of culture of innovation in the industry
• Low medical expenditure and healthcare spend in the country
• Inadequate regulatory standards
• Production of spurious and low quality drugs tarnishes the image of industry at home and abroad

Opportunities

• Significant export potential
• Licensing deals with MNCs for NCEs and NDDS.
• Marketing alliances to sell MNC products in domestic market
• Contract manufacturing arrangements with MNCs
• Potential for developing India as a centre for international clinical trials
• Niche player in global pharmaceutical R&D

Threats

• Product patent regime poses serious challenge to domestic industry unless it invests in research and development.
• R&D efforts of Indian pharmaceutical companies hampered by lack of enabling regulatory requirement. For instance, restrictions on animal testing outdated patent office.
• Drug Price Control Order puts unrealistic ceilings on product prices and profitability and prevents pharmaceutical companies from generating investible surplus.
• Export effort hampered by procedural hurdles in India as well as non-traiff barriers imposed abroad.
• Lowering of tariff protection