Updated on 25 June 2013
The Indian healthcare sector has tripled in size during the last decade from $23 billion in 2002-to-$70 billion, but it continues to lag behind peer countries in spending, outcomes, health manpower and infrastructure. Within healthcare, the Indian pharma market has also shown strong growth from $6 billion in 2005-to-$18 billion and is expected to grow to $45 billion by 2020, the report said.
"Discussions with several global and Indian industry leaders indicate a widespread acknowledgement of India's potential for R&D innovation and while the fundamental drivers of the ‘India advantage' exist, the opportunity has not played out as expected," the report said.
"India holds a vast and largely under-tapped pool of drug innovation resources and capabilities," said Dr Ajay Dhankhar, senior McKinsey partner and leader of its global R&D practice.
The report recommended that the Indian Government fix and clarify relevant policies and regulations around clinical trials and IP; focus cross-border and cross-entity collaboration on building talent and infrastructure across clinical trials, PI training and basic research.
Top pharmaceutical companies, academicians, scientists and officials from both India and the US were present at the day-long event that focused on therapeutic areas of oncology and infectious diseases.