The pharmaceutical industry in India is highly developed, having a market size of $27,57 billion (at the level of 2016). By 2020, the pharmaceutical sector is expected to grow at $55 billion, as stated by the Indian Brand Equity Foundation. It can be an attractive idea to register a company in India in the pharmaceutical industry, as the country may soon become the third global economy, based on the growth rate. All companies operating in this sector are required to obtain specific licenses and our team of specialists in company formation in India can advise on this subject.
Pharmaceutical sector in India
The pharmaceutical industry in India represents an important sector for the local economy. The largest share of products deriving from this industry is represented by generic drugs (accounting for 71% of all the production of pharmaceutical products).
Products manufactured here are exported to more than 200 countries and the main trading partner in this case is the United States of America (USA).
Besides the high level of development of this sector, investors should be starting a company in India as the operational costs are much lower compared to the ones practiced in Western economies. For example, the production costs of pharmaceutical products are 33% lower than in the case of the ones available in the USA.
Compared to other local jurisdictions, India stands out as a top destination for investments, as it provides a highly skilled workforce with a high level of tehnical abilities. Our team of consultants in company formation in India can offer in-depth assistance on the employment regulations available for this sector.
Our agents can also help you find a suitable virtual office in India.
FDI in the Indian pharmaceutical sector
It is important to know that the pharmaceutical sector in India allows the registration of a company with 100% foreign direct ownership. This is available for the manufacture of medical devices, provided that specific conditions are met.
This sector has attracted a large number of foreign direct investments (FDI), which accounted for $15,570 billion (between April 2000 – September 2017).
The procedure on how to form a company in India may be more complicated than in the case of other business activities, due to the high importance of the products deriving from this sector.
Investors may contact our representatives for consultancy services regarding the issuance of special licenses.