Large pool of skilled manpower and initial investments made in pharma, has helped India gain a march over China in the $2-billion contract research and manufacturing services (CRAMS) space.
India has over three times as many US FDA-approved plants as China in terms of DMFs (Drug Master Files). Additionally, the country has filed 1,155 DMFs between 2000 and June 2007, against 329 filings by China. And in the formulations manufacturing space, India has a head-start of over three to five years over China, says a latest survey by KPMG in association with CII.
At present, India has about 75 US FDA-approved plants. This is the highest number of the FDA-approved plants outside the US and in terms of DMFs, Indian market share has grown to almost 46% in 2007 from a mere 14% in 2000.
The introduction of product patents in 2005 gives India a significant advantage in contract manufacturing outsourcing. The Indian CRAMS market was estimated to be at $869 million in 2007 and it is projected to grow at a compound annual growth rate of 41.7% to touch $2.46 billion by 2010, said the survey.
Besides, Indian companies also have a significant expertise in regulatory compliances and supply chain management system. Eastern Europe is gradually losing out on its cost-efficiencies to India. The cost of manufacturing in India is a fraction of the cost of manufacturing in the US or Europe. India is one of the lowest cost manufacturer and one of the lowest manpower rates in the world, the study pointed out.
Indian companies through their high quality and low-cost production models, have bagged more impressive deals in this space, the report says.
These deals validate India?s potential to achieve a larger share of the global manufacturing outsourcing market.