Page 62 - IACC Newsletter March 2013 Issue no. 9

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"Companies like Ford and General Motors are setting up factories in Gujarat, and in a move that promises to strengthen US-
India relations now and in the years to come," Faleomavaega said.
US exports may drive top Indian pharma companies to grow 20% in 2013
As per IMS Health, global generic spending is expected to increase to $430 billion by 2016 from $242 billion in 2011.
Top Indian pharma players will continue to grow strongly at over 20 per cent in 2013, primarily led by exports to the US
market, India Ratings said in its outlook for the sector. “We believe that top players of the sector will continue to grow
strongly in 2013 (over 20 per cent per annum), primarily led by exports. “Of the export markets, Indian pharma will focus on
the US market which presents significant opportunities for the next two years for generics, due to patent cliffs and recent
changes in healthcare policies,” said the India Ratings report on outlook for Indian pharmaceuticals for 2013.
Patent expiry opportunities, coupled with efforts to contain healthcare spends, are likely to drive the generic market in
developed countries. Affordability and availability will make a case for generics usage in the branded generic developing
markets. As per IMS Health, global generic spending is expected to increase to $430 billion by 2016 from $242 billion in
India Ratings said R&D spends may continue to increase in 2013 as well as Indian players have started targeting complex
chemistry products.
R&D spends have increased over the last few years as pharma players have built robust portfolios of products approved by
USFDA. Most companies also have a strong pipeline of products awaiting approval, it said. Robust new product pipelines
may bear fruit in 2013 on commercialization. Incremental capex requirements, however, are likely to remain modest in the
year as many companies benefit from existing infrastructure which would be sufficient for expected increase in operations,
according to the agency.
Observing that the growth drivers for domestic pharma market would remain intact, India Ratings said the decision of
National Pharmaceutical Pricing Policy (NPPP) 2011 to increase the number of drugs under price control will not have any
major impact on the sector’s profitability.
The pharma industry has also performed well on exports front, too, with exports having been increased from Rs 386 billion
in 2008 to Rs 775 billion in 2012.
Nine US Governors pitch for Indian investment
Governors of as many as nine Americans States attended a corporate reception of Indian companies and sought their
investments in the respective States.
While gathering of so many US governors at the corporate reception of other countries is considered rare, their presence at
the event organized by Confederation of Indian Industry-India Business Forum (CII-IBF) yesterday reflected the new
bonhomie of economic relationship between the two countries.
Governor Jack Markell of Delaware, who returned from nine-day India trip, last week, said the future growth of his State is
largely tied to plugging into the global economy, specifically to India. "As the fastest-growing market for US exporters, India
provides significant opportunities to increase US growth," he told the select audience.
The Arizona Governor, Janice Brewer said that her State regards India as an "important growing and moving trading partner"
and announced that she is planning her first trip to India. She asked Indian companies to come and invest in her State
especially in high-tech sector, aerospace defense and renewable energy.
Praising Indian businesses in his States, Governor Mike Beebe of Arkansas said the Indian companies not only create jobs
and economic growth, but tie-ups with them also provide an educational opportunity, among other things. "We are very
proud of our relationship with India. We are very proud of influence of Indian culture," Beebe said.