The South Indian pharma market is emerging as a key market in the Indian pharma industry and certainly has a promising future ahead, especially in the areas of bio-cluster, bulk drugs, manufacturing, ayurveda and spas, according to a study conducted by Confederation of Indian Industry (CII) and Interlink, the business and management consulting firm. The study was conducted in the pharmaceutical and healthcare industry in the South Indian pharmaceutical market.

The purpose of the study was to assess the opportunities offered by the south Indian pharma hubs like Hyderabad, Chennai and Bangalore and to project them as attractive investment destinations for the pharma industry.

Some of the key opportunities offered by South India as a pharma market include availability of rich scientific and technical expertise, academic research facilities, environment conducive to innovation and credibility, English language and competitive compensation, expertise in IT skills with strong knowledge in pharma domain ideal for drug development and clinical research facilities, economic and regulatory climate conducive to innovation, strong capabilities in manufacture of bulk drugs and formulations, emergence of biotechnology sector in the region, opportunities in the CRAMS, CROs & clinical trials and opportunities for export of bulk drugs in the emerging markets.

Earlier, another CII study had predicted 19 per cent growth for Indian pharma industry by 2015. Riding on different factors from expansion of middle class, generic and brand development, marketing effectiveness, rural markets and health insurance, the Indian pharmaceutical industry will grow at 19.64 per cent by 2015, the study by CII and Interlink had said.

The growth of pharmaceutical industry in India is facilitated by health consciousness of people, affordability due to rising incomes of expanding middle class and also health insurance facilities. A large number of untreated and under-treated medical conditions will lead to higher demand for newer and better medicines. In addition to this potential market, rural markets offer a substantial growth for the pharmaceutical industry, the study says. The white paper titled "CII-Interlink paper on growth agenda of pharmaceutical industry in India" was prepared for CII by business management consulting firm Interlink.