By Group 8 :

B. Varaprasad (M13-09)
Feroj Israel (M13-12)
R. Tejaswini (M13-31)
Shomojit Chatterjee (M13-38)
 PESTEL
ANALYSIS
OF
❑ Indian pharmaceutical sector industry supplies :
- over 50 per cent of global demand for various vaccines
- 40 per cent of generic demand in the US
- 25 per cent of all medicine in UK
- over 80 per cent of the antiretroviral drugs used globally to combat AIDS
❑ India’s pharmaceutical exports stood at US$ 17.27 billion in FY18.
❑ US$ 13.94 billion in FY19 (up to December 2018)
❑ In 2018-19, these exports are expected to cross US$ 19 billion.
❑ 31 per cent of these exports from India went to the US.
❑ There are over 10,500 manufacturing units and 3,000 pharma
companies in India. Over 60,000 generic brands exist across 60
therapeutic categories.
❑ The governments make their drug regulatory authorities, which supervise
and implements the necessary regulations of drug control.
❑ They also regulate the operation of export and import of medicines and
drugs, production and export of finished drugs, their sales and pricing.
❑ Make in India Initiative has paved the way for growth of Pharma Industry.
❑ FDI POLICY :
- 100% FDI has been allowed through automatic route for Greenfield
pharmaceuticals projects
- For Brownfield pharmaceuticals projects, FDI has been allowed up to 74%
through automatic route and beyond that through government approval.
❑ The increased expenditure on healthcare is expected to benefit the
pharmaceutical sector as well.
❑ The economic situation in the country affects the pace and development
of this industry.

❑ The economic conditions of most of the countries across the world are not
good.

❑ Most of the less developed countries stopped buying the expensive

medicines.
❑ Include poverty, malnutrition, obesity and expansion of diabetes.

❑ Issues like poor sanitation, drinking, smoking, and poor oral hygiene
create serious threats to the industry.

❑ Now people are well informed about healthcare activities and they are
concerned with different health issues; increase in the aging population
is creating various threats to the industry.

❑ Focus on the research and development sector to find the proper

solutions of their health concerns.
❑ The use of IT in the preparation of the drugs is becoming most important
and they carry out different research and development work and it has
help the industry for improvement of Medicines.

❑ The improvement in technology has create new business prospects and in

the coming time, new therapy systems and services will provide
information for the healthcare products and it will also help in customize
treatments and direct to patient advertising.
❑Opportunities:
- Based on seasonal, climatic changes.

❑Pharmaceutical pollution:
- Residues come from manufacturing, veterinary use, agribusiness,
hospitals, and community use.
- According to the US Geological Society, non-prescription drugs
and steroids were more often detected in streams than
prescriptions drugs, though a variety of prescription drugs were
also present.
- Can be stopped for the most part, but currently there are no
commonly used methods of preventing it from human or animal
waste.
❑ Various countries and the pharmaceutical companies are taking steps in
generic drug production and are introducing new health reforms in the
pharmaceutical industry, which can help them in understanding their
issues and mitigating their issues amicably.

❑ Breach of intellectual rights; Regulation of Online Pharmaceutical sales.

❑ It is also necessary to meet the legal issues of the import and export of
the drugs and to pay the taxes and other duties.

❑ They also ensure proper use of the medicines and prevent the issue of
highly sensitive medicines to unauthorized persons.
❑ Medicine spending in India is projected to grow 9-12 per cent over the next five years,
leading India to become one of the top 10 countries in terms of medicine spending.

❑ Going forward, better growth in domestic sales would also depend on the ability of
companies to align their product portfolio towards chronic therapies for diseases such as
such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are on the
rise.

❑ The Indian government has taken many steps to reduce costs and bring down healthcare
expenses. Speedy introduction of generic drugs into the market has remained in focus
and is expected to benefit the Indian pharmaceutical companies.
❑ In addition, the thrust on rural health programs, lifesaving drugs and preventive vaccines
also augurs well for the pharmaceutical companies.