SWOT Analysis of Indian Pharmaceutical Sector:

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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 For instance, restrictions on animal testing outdated patent office.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
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