Indian pharmaceutical companies are projected to experience a revenue expansion of 9-11% in the fiscal year 2024, as indicated by a recent report from credit rating agency ICRA. The expected growth is linked to a resurgence in the US market, strategic acquisitions, and the introduction of new products. The crucial US market is anticipated to contribute 11-13% to the overall growth in FY2024. Despite brief challenges from price controls and weather uncertainties, the domestic market is forecasted to grow by 7-9% in FY2024, fueled by price hikes and the launch of new products.
ICRA’s outlook is based on a sample set of 25 companies, representing approximately 60% of the total revenues of the Indian pharmaceutical industry. Emerging markets are poised for a growth of 13-15%, while the European market is expected to increase by 11-13%, contributing to the overall optimistic scenario.
Mr. Deepak Jotwani, Assistant Vice President and Sector Head at ICRA, highlighted that the growth in the US market is influenced by key drugs going off-patent and product shortages in specific therapeutic segments. However, he also pointed out regulatory risks in the US market, citing an increase in warning letters and import alerts issued to Indian pharmaceutical firms.
