Reasons to invest in Indian Pharmaceutical Stock Market | क्या 2022 फार्मास्यूटिकल स्टॉक मार्केट में इन्वेस्ट करने का सही समय है?

Indian Pharmaceutical Stock Market: India is a prominent and rapidly growing presence in the global pharmaceuticals industry. It is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and also supplies 62% of global demand for vaccines. India ranks 3^rd worldwide for production by volume and 14^th by value.

Here are some of the reasons why to invest in the Indian pharmaceutical industry (Indian Pharmaceutical Stock Market) :

Hub of Generic Brands

The Indian pharmaceutical industry is a source of some 60,000 generic brands across 60 therapeutic categories.

Manufacturer of Active Pharmaceutical Ingredients (APIs)

The Indian pharmaceutical industry earns its reputation for manufacturing over 500 different APIs. The API industry is the third world’s largest, and it has 57% of APIs on the WHO.

Best Pharma Companies

India has the highest number of US-FDA compliant Pharma plants outside of USA and is home to more than 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities

Domestic Turnover

The Indian pharmaceutical industry’s market turnover stood at $ 18.12 billion in 2018. It experienced a growth of 9.4% from 2017.

Third Largest Market

The Indian pharmaceutical industry is poised to become the third largest market in the world by 2020 in terms of incremental growth.

Lower Cost of Manufacturing

Cost of manufacturing ~ 33% lower than western markets

Increase in Export Growth

According to total sales audit data from world’s largest pharmaceutical market research firm IMS Health, the Indian Pharma Market (IPM) grew 59 per cent yoy in April, 2021 vs 16 per cent yoy in March, 2021 due to the low base effect in April, 2020 and sharp surge in Covid-19-related sales.

• Expected to reach $65 bn by 2024, and ~$120-130 bn by 2030
• Pharmaceutical industry growth rate 10-12%

Foreign Direct Investment (FDI)

The Indian government has allowed 100% FDI under the automatic route for Greenfield pharma.

FDI in Brownfield Pharma

The Indian government has allowed 100% FDI in Brownfield pharma. In this 74% is allowed under the automatic route while the rest through government approval route.

The ever increasing pool of prodigious scientists and engineers is one of the key reasons behind the exponential growth of the Indian pharmaceutical industry. Government initiatives have also proved immensely beneficial. Leverage the growth of Indian pharmaceutical industry and expand your business with a seasoned India Entry Strategy firm today.

Pharmaceutical Stock Market: Is 2022, the right time to invest in Pharma Stock Market?

Pharmaceutical Stock Market: The data from South Africa is not as bad as the earlier Covid versions. So buying pharma for Omicron may be a pace of time in a way. But pharma was one of the underperformers last year as a whole and so there may be pockets in the pharma space which may do relatively well.

There have been a lot of pharma stocks down 50-40% from their tops in June and July last year. There are selective pockets where one can build up small positions but pharma is not going to be very strong this year in general exiting the Omicron. It will go away eventually and become a much smaller thing and so if the market discount something like six to eight months down the line, pharma may not be a great pick right now.

It may fall some more and if you are timing the market, that might actually be a better point. Of course, with just asset allocating, it is fine but if you are looking to time it, pharma will have better picking points three to six months down the road.

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Also check out: Upcoming Government Pharmacist Exams in 2022 (superfastgyan.com)

References:

1. 10 Reasons Why You Should Invest in the Indian Pharmaceuticals – Tecnova (tecnovaglobal.com)
2. investment strategy | stocks to buy: Pharma will have better picking points 3-6 months down the road: Deepak Shenoy – The Economic Times (indiatimes.com)
3. Pharma industry in India: Invest in Indian Pharma Sector (investindia.gov.in)