"The worldwide demand for cost-effective generic drugs is leading India to rise as a hub of generic drug manufacturing," the report said.
Further, a number of pharma companies are increasing their operations in India, which has 119 manufacturing sites approved by the USFDA, the highest in any foreign country.
India accounts for over 10% of global pharma production, with over 60,000 generic brands across 60 therapeutic categories; it manufactures more than 400 different active pharmaceutical ingredients (APIs).
On the opportunities for the country's pharma sector, the report said Indian firms can expect to garner $40 billion in sales with 46 US drug patents set to expire by 2015.
The focus on regions with ageing population like Japan, Africa, and Latin America for growth are expected to pay dividends for the Indian companies.
"The main focus of the Indian companies is on countries with ageing populations such as Japan, Africa, and Latin America, which need cheaper drugs," the report said.
Besides, the multinational (MNCs) firms are investing and driving growth in the Indian life sciences industry despite stiff price competition, government price controls, and limited availability of infrastructure, the report said.
"India has a fragmented life sciences industry, with stiff price competition, government price controls, and limited availability of infrastructure. Nonetheless, MNCs are increasing their operations in India and creating opportunities to drive industry growth in the country," it added.
