Saturday, 21 November 2020

Budget Proposal 2021

Suggestive Direct Tax Propositions for Budget 2021

The present applicable tax rate in case of domestic companies with turnover up to Rs. 400 cr is 25%.

Option to opt for Lower tax rates of 22% in case of certain domestic companies is available u/s 115BAA.

Further, option to opt for even lesser tax rates of 15% is available for certain domestic manufacturing companies in terms of Sec 115BAB.

Whereas the applicable rate of tax in case of partnership firms and Limited Liability Partnerships (LLPs) is 30%. This creates huge tax disparity.

It is understandable that in order to encourage the organised sector, the government has offered lower tax rates for companies. 

But even on that pretext the tax rates are really partial towards LLPs which are also duly registered with MCA, follow various compliance requirements including filing of Annual Return and Statement of accounts with ROC, as they fail to enjoy the advantage of lower tax rates. All the information of LLPs is duly available on public domain.

The tax rates for LLPs should be brought at par with the tax rates of domestic companies, i.e.,

  • General tax rate of 25% for LLPs with turnover up to 400 cr.
  • Reduced tax rate of 22% subject to similar provisions of Sec  115 BAA

Tax rates for partnership firms should also be brought down to say 25%.

2 Lower liquidity in the hands of businesses due to Covid-19 impact

Continuation of reduced TDS rates by 25% up to Q1 & Q2 of FY 2021-22. This will support businesses in Covid recovery period with higher liquidity and help sustain their businesses.

3 Hefty increase in premiums of  medical insurance policy 

  • Rationalisation of general limit of medical insurance for individual from Rs. 25,000 to Rs. 50,000

  • Further, in case of senior citizens, medical insurance limit should be relaxed to Rs 75,000 from Rs. 50,000

4 Sec 44AD

Sec 44AD provides for deeming profits in case of an eligible assesse with turnover up to Rs. 2 crores, @ 6% / 8% of gross receipts.


Sec 44AD(4) & 44AD(5) further provides as under:

Sec 44AD(4) : Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1).

Sec 44AD (5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.

The purpose of Sec 44AD is to relax the compliance burden for a small taxpayer, specifically, the once having turnover less than 2 crores. 

However, the conditions provided under Sec 44AD(4) and 44AD(5) are very deterrent provisions for such small taxpayers.

The requirement to abide by and declare profits in terms of the provisions of Sec 44AD for a continuous period of 5 years, failing which the assessee is required to mandatorily get his accounts audited u/s 44AB for next 5 years, is very harsh on small taxpayers. 

This makes the scheme of Sec 44AD for small taxpayers very stringent and less viable. This is more so keeping in view the relaxation in tax audit limit newly brought in to Sec 44AB by insertion of proviso to Sec 44AB (a). By virtue of the said amendment, the tax audit limit has gone up to Rs. 5 crores provided Cash receipt or Cash payment ratio does not exceed 5%. 

This creates huge anomaly in Income Tax Act where a small assessee with turnover of even less than 1 crores is required to get tax audit done for a period of 5 years if he declares profit less than 6% / 8% opts out of Sec 44AD before 5 continuous years.

On the other hand, an assessee with turnover between 2crores to 5 crores is not required to get tax audit done if satisfies the condition of proviso to Sec 44AB(a) and may even file its ITR at losses without tax audit. 

The provisions of Sec 44AD(4) and Sec 44AD(5) should be relaxed keeping in view the huge compliance burden on small taxpayer.

5 Taxability of Long term capital gains @ 10% vis-à-vis Short term capital gains of 15% leaves a small gap of 5% between short term and long term capital gains, acting as a deterrent for long term investors and more volatility in the market.

Scrapping taxability of long term capital gains on equity shares and equity oriented mutual funds

6 Additional depreciation u/s 32

Presently, the additional depreciation is only allowed in case of installation of new plant and machinery by an assessee engaged in the business of manufacture or production of any article or thing or in the business of generation, transmission or distribution of power. 

No such additional depreciation is allowed in case of new plant and machinery installed by service industry. Under the current scenario, major employment opportunities are generated in service sector and the plant and machinery being computers form the main infrastructure for expansion/ addition of new workforce to their team.  

Moreover, the depreciation rates on computers have been reduced from 60% to 40%. 

Provision of additional depreciation to service industry on installation of office would promote tax incentive on expansion and generation of new employment opportunities by service sector. 

Additional depreciation on installation of new plant & machinery to be provided to service sector.

7 Women workforce hygiene and enforcement measures

Under present days, where women are ahead of men in all spheres of work life, there are not much workplaces which have separate toilets installed for women, especially in case of MSMEs. This creates huge hygiene issues for women workforce.  

Moreover, day care centres if setup at offices, would encourage women to balance work and personal duties in a better way. A mother who is better relieved about the well-being of her child, can better focus on her job and offer far-sighted results.

  • 100% Weighted deduction/ additional depreciation on installation of separate women toilets at workplaces.

  • 100% Weighted deduction/ additional depreciation on installation of sanitary pads vending machines for women at workplaces.
  • Weighted deduction/ additional depreciation on setting up cruches/ day care centres set up within a commercial organisation employing say 20 or more women workforce.

8 Installation of paper recycle machines, water recycle machines, and waste recycle plants need to be encouraged more and more for a green environment.

  • 100 % Weighted deduction on installation of paper recycle machines, water recycle machine and waste recycle plants etc. 

9 Sanitisation machines

In the wake of Covid -19, sanitisation and personal hygiene of an individual, before coming in contact of any other individual has gained momentum. 

This is helpful in prevention of spreading of any virus related disease and not just novel coronavirus. 

Therefore, installation of sanitisation machines which involve huge one time outlay for a business organisation should be encouraged by tax incentives.

  • 100% weighted deduction should be allowed on installation of sanitisation machines in offices for a period of next 3 years.

10 Inclusion of Covid-19 in specified disease 

There have been many such cases during pandemic where in the absence of medical policies, huge lacks of monies had to be spent on treatment of covid-19.

Curative provision allowing deduction of such expenditure spent should be inserted with retrospective effect from 1.4.2020

Deduction of medical expenditure made on treatment of Covid-19 of self, spouse, dependent children and parents, incurred by an individual should be allowed.

Subject to condition that the expenditure is not covered by any medical insurance policy.

11 Promotion of new investment in business set up by an individual by liquidation of his house property 

Presently, there is no deduction of capital gains available to provide for tax incentive where any individual sells some property for the purpose of setting up new business, purchase of new plant and machinery, which in turn generates more employment opportunities. 

Deduction of such long term capital gains on sale of property for investment in setting up new businesses should be allowed upto 50 lacs. 

This would  encourage those individuals having surplus properties to invest funds in new business, which would in turn generate new employment opportunities and promote “Atmanirbhar Bharat”

12 Tax holiday for of Setting up of hospital units depending upon the capacity of beds

In the backdrop of pandemic, there is high need of hour to expand our medical infrastructure 

5 years tax holiday on profits of new hospitals set up within a period of next 3 years, i.e., from the period 1.4.2021 to 31.03.2024

  • Tax holiday of 50% of profits  - in case of hospitals with beds capacity of upto 100
  • Tax holiday of 75% of profits  - in case of hospitals with beds capacity of upto 300
  • Tax holiday of 100% of profits  - in case of hospitals with beds capacity of upto 500

I HOPE Narendra Modi Sir and Mrs Nirmala Sitharaman shall consider the suggestions 

Tuesday, 21 July 2020

FMCG - Investment Prospect

16 July 2020
Sectoral Research

FMCG – Investment Prospect
Mutual Fund Recommendation                                                                                                                      

What's driving FMCG growth?
• Rural areas and essentials driving sales for companies
• Contribution of rural to overall FMCG sales : 33%
• FMCG capacity utilisation in June :
90-100% (of pre-covid levels)
• Consumption growth in rural areas: 85-90% (of pre-covid levels)
• Strong underlying consumer demand in June, led by the hygiene and food categories
• Consumption growth in urban areas: 50-60% (of pre-covid levels)

Q4 FY19-20 and Lockdown
- Saw a subdued consumer demand from beginning of lockdown to mid-April
- Increase in for ‘personal care and personal hygiene’ category, and drastic decline in demand for beauty care products
- Increased demand for health and immunity boosting foods
- Top 10 FMCG companies generated free cash of over Rs 26,000 crore in FY20 despite the adverse impact of the pandemic in the second-half of March
- The market environment for FMCG companies are unlikely to change too drastically
Given the disruptions to the supply chain arising from Covid-19 in March 2020, the annual results still saw some growth in most FMCG companies
The Q4 results didn't see the year-on-year sales growth it usually does, but the numbers fared relatively well.
Overall, the Q4 results paint a picture of recovery, increased consumption and rationalization of product categories.
Recovery in demand seen in June implies that Q1 will not be a complete washout as anticipated earlier

The pandemic and  the consumer behavior
- Trips to grocery stores declined from 34.3 in March to 30.5 in May, indicating pantry loading
- Fewer trips, however, translated into bigger ‘trip size’, described as volume bought per trip, resulting in volume growth for companies
- Expenditure on food, health and homecare products by Indian households grew 4.3% during the covid-19-induced lockdown.
- Parle Products saw a 5% expansion in the packaged foods and packaged biscuits segment, registering better-than-expected growth from March to May
- Britannia Industries sold more biscuit packs in April and May, posting 20% and 28% growth in sales, respectively. This was on account of increased in-home consumption of the company’s brands.
- FMCG companies are witnessing a steep rise in their online sales - some have even claimed that their online business has doubled and tripled in this short span of time.

Rural Demand
- Migrant workers in urban areas moving back to their hometowns has led to a surge in demand
- Rural sector has been growing much ahead of the urban sector and is expected to continue to outpace it
- Government spending on MNREGA and higher MSPs will cause rural consumption to further see an uptick
- Performing better than the pre-COVID days
- Increased awareness in health and hygiene stimulated demand for the relevant products
- FMCG companies have increased investment in rural areas in an attempt to capitalize on the growing demand
- Fewer infections and a less intense lockdown
- Consumption growth in rural areas reached 85-90 per cent of pre-Covid levels in June against 50-60 per cent in urban areas.
- Several government initiatives for farmers and a good monsoon can further improve demand

Relatively stable demand
In the current economic environment, FMCG may provide some respite in terms of business volatility. While the earnings can be expected to fluctuate, macro economically the demand and sales can be expected to remain relatively stable even in times of turmoil.

Monday, 20 July 2020

Indian Pharma 2020

July 2020
Asia Pacific/India
Sectoral Research
Pharmaceuticals and Healthcare

India Pharma 2020
Global positioning, future demand and the pandemic

Executive summary

Leading pharma producer
Indian pharmaceutical industry supplies over 50% of global demand for various vaccines and 20% of global demand for generics

'Pharmacy of the world'
India services over 40% of US demand for generics and 25% of UK demand for all medicines. India’s pharmaceutical exports stood at US$13.69 billion in FY20 (up to January 2020).

One of the fastest growing industries in India
Indian pharmaceutical sector is expected to grow at a CAGR of 22.4% in the near future

Generics market dominance
Over the years, India has emerged and has established itself as the world leaders in the generic drug manufacturing.

Growing biosimilar and specialty sectors
The domestic sales for biosimilars in India are close to US$250 million and growing at a compound annual growth rate of 14%.
Specialty sector is seeing growing investments by major pharma companies like Lupin, Sun pharmaceuticals etc.

The Indian pharmaceutical industry has 3 major sectors
·         Generic drugs - A generic drug is a pharmaceutical drug that contains the same chemical substance as a drug that was originally protected by chemical patents.

·         Biosimilar - A biosimilar is a biologic medical product highly similar to another already approved biological medicine, which is approved according to the same standards of pharmaceutical quality, safety and efficacy that apply to all biological medicines.

·         Specialty drugs - Specialty drugs or specialty pharmaceuticals are a recent designation of pharmaceuticals that are classified as high-cost, high complexity and/or high touch.

Generic Drugs Market
·         India has emerged as the world leaders in the generic drug manufacturing.
·         Accounts for 20% of global exports in generics. India’s pharmaceutical exports stood at US$ 13.69 billion in FY20 (up to January 2020).
·         Generic drugs market holds 70% market share in India’s pharmaceutical industry in terms of revenue.
·         The share of generic drugs is expected to continue increasing to reach US$ 27.9 billion in 2020.

       Largest export markets – North America and Europe
·         India’s export growth for FY18-19 was one of its highest growth rates in the last decade.


       Q4 of FY19-20 and Q1 of FY20-21 saw the peak of lockdown, which lead to pharmaceutical exports growth falling drastically in the month of March and April.
·         Disruption of operations and bulk drug imports from China led to this slowdown.
·         Exports were quickly resurrected by increased demand of pharmaceuticals from foreign countries amidst the Covid-19 crisis.
·         Export demand seen in May largely driven by Paracetamol and Hydroxychloroquine (HCQ).
·         Both these drugs were being used heavily in an attempt to combat the virus. These exports were also helped by an ease in lockdown in the month of May. Trend is likely to continue owing to global demand for affordable generics.

 India - a major player in the world’s battle against Covid-19
       Amidst the current crisis, India emerges as a strong supplier of cheap generic drugs that help  recovery of patients suffering from Covid-19. Indian pharmaceutical industry have started ramping up production of Covid-19 treatment drugs.
      On 7th July 2020, The Union health ministry revised its clinical management protocol and asked doctors to treat COVID-19 patients with investigational therapies that include Remdesivir, Convalescent Plasma, Tocilizumab and Hydroxychloroquine (HCQ).

      Some major drugs being used against Covid-19:

Hydroxychloroquine (HCQ)
·         Leading suppliers - Teva Pharmaceutical, Zydus Cadilla, IPCA Labs and Cadila HC
·         Originally developed by Gilead Sciences ltd., a US pharma company.
·         India manufactures 70% of the world's supply
·         Licensed in India by – Cipla, Hetero, Jubilant Life Sciences, Dr.Reddy's labs, Zydus Cadila and more.
·         India sold over 22cr HCQ tablets in March, April and May (2020) against 24cr in all of 2019.
·         Distributable in 127 countries.
·         700% growth in exports between March and May (2020). HCQ exports were $25mn during April-May, 2020.
·         Approved for emergency usage in India, US, Japan and Europe.
·         UK megatrial called Recovery revealed the results of their trial in mid-June stating that HCQ did not benefit hospitalized patients.
·         US has bought all of Gilead’s Remdesivir supply for the next 3 month.
·         Post the megatrial, around June 15th, India and US FDA removed HCQ from its treatment protocol for severe patients.
·         Europe and some other regions are worried about availability of the drug which helps by diverting demand towards India.
·         The revoking of authorisations doesn’t necessarily mean further demand for HCQ is going to die out since the Indian Union health ministry has permitted investigational therapies that include Remdesivir, Convalescent Plasma, Tocilizumab and Hydroxychloroquine (HCQ).
·         Gilead is expected to make $525mn in 2020 from sales and $2.1bn in 2021, indicating growing demand for the next 18 months.
·         Indicates some support to earnings in upcoming Q1 FY20-21 results.
·         Approved as an anti-Covid drug use by the DCGI.
·         UK megatrial called Recovery found dexamethasone reduced deaths by one-third in patients on a ventilator.
·         Developed and commercialized by Strides Pharma.
·         UK has started stockpiling the drug.
·         Dr.Reddy, Glenmark, Lupin and Cipla are some major players for this drug.
·         Zydus Cadila has 83% market share for the drug.
·         Not currently approved by US and Europe; still under trial.
·         Cadila Healthcare, Cipla, GLS Pharma, Wyeth Ltd., Morepan, Baroda Pharma and Wockhardt are other manufacturers of the drug.
·         Some companies exporting to UAE, where the drug is approved.
·         US Hospitals and other health-care customers had increased orders by more than 600% in June.
·         Could be a strong potential demand driver. 
·         US facing a shortage of the drug due to manufacturing delays.
·         Dexamethasone seeing an uptick in demand, judging from reports by manufacturers and hospitals.
·         Indian pharmaceutical industry is well positioned to take advantage of this surge.

     Pricing pressures and stress on margins
     Given the above points, Indian pharmaceutical industry still has plenty of room to wiggle. Indian generic drugs or generic drugs in general, have huge margins which can go up to a 1000%. Indian pharma enjoys a higher margin in US (one of its biggest markets) than in India itself.
     With margin pressures arising from regulatory and competitive obstacles, Indian companies are now optimizing their R&D spends instead of ramping it up like they have in the past.
      Looking at the results of the past 3 quarters, margins still seem to be healthy despite pricing pressures on the US generics business.


    Given the above points, Indian pharmaceutical industry still has plenty of room to wiggle. Indian generic drugs or generic drugs in general, have huge margins which can go up to a 1000%. Indian pharma enjoys a higher margin in US (one of its biggest markets) than in India itself.
    With margin pressures arising from regulatory and competitive obstacles, Indian companies are now optimizing their R&D spends instead of ramping it up like they have in the past.
     Looking at the results of the past 3 quarters, margins still seem to be healthy despite pricing pressures on the US generics business.

   Biosimilar Drugs Market

·         India is one of the leading manufacturers of biologics.

·         India is the second largest global supplier of vaccines, most of which are biosimilars.
·         The domestic sales were close to US$250mn in 2019, growing at CAGR of 14%.
·         The export of biosimilars from India stood at US$51mn in 2019.
·         40 biosimilar products exist in the Indian domestic market.
·         Biosimilars cost significantly less than original branded biologics, but still are expensive to develop.
·         Herceptin recently got approval for the 1st biosimilar manufactured by an Indian company which is approved for marketing in the US.
·         Biosimilars market is worth $2.2bn out of the $32bn total Indian pharmaceutical market.
·         Bringing a biosimilar to the market in India can cost more than $150m, where 80% expenditure is on R&D.
·         Big expenses but has the potential to give promising returns.

       Market opportunity and room for growth

Growth projections
·         About 10 biologics, with a revenue market of US$60bn+, are about to expire
·         Revenue from US and Europe is expected to grow by 24% annually for 5 years to $13.3bn in 2025.
·         Unmet need in multiple therapeutic areas, particularly in oncology, nephrology, immunology, diabetes and others.
·         India is projected to be a huge domestic market for biosimilars due to its burgeoning population.
·        US market slowly picking up biosimilars. Realisations for Indian players in the US market would be much higher.
·         Price gap - between original and biosimilars - widened to over 60% - for some drugs in Europe - 20% a few years ago.
·         Wider price difference = faster adoption of biosimilars
       Growth trend in Indian pharma R&D spend:

      We can see in the above picture that R&D spend was riding a strong growth wave up till 2017. As we mentioned, it is only recently that Indian pharma companies have started to optimize their R&D spends in order to remove some stress their margins are facing due to higher regulatory cost and pricing pressures.

    Active Pharmaceutical Ingredients (API)
·         These are the active ingredients present in medicines.
·         India imports most of their API requirements and China is the biggest supplier.
·         India is highly dependent on China for cheap API, even to produce medicines as basic as Crocin.
·         India imports 70% of total bulk drug (API) requirements from China.
·         Chinese APIs are 20% cheaper than domestic APIs. They are able to secure this due to lower cost of production and lower cost of finance.
·         One of the risks to this segment is the India-China conflict. However, we must realise that not only India is dependent on China but India is a lucrative market for the Chinese. We do not project this conflict to be too harmful to the Indian supply channel.

      Measures to increase independence in the API segment
·         Mega bulk drug parks in partnership with state governments to facilitate low cost and efficient production.
·         Government grants to states of Rs1,000 crore for each bulk drug park.
·         Production-Linked Incentive Scheme which will provide financial incentives to eligible manufacturers.
·         Domestic players are also trying to source their APIs domestically, whenever feasible.

    Macroeconomic factors
       India and its ageing population
·         With decreasing fertility rates and increasing life expectancy, India is witnessing a growing proportion of elderly population to its total population.

·         The cohort of Indians over the age of 65 is projected to increase markedly. By 2021, Oxford Economics estimates that 95m+ Indian citizens will be over the age of 65.
·         This demographic of the population usually requires more medical attention and is prone to some kind of medical condition.
·         Indian pharma industry could see a rise in demand due to increased number of such cases.

      Strong urban population growth rate

·         Urban population is responsible for majority of the pharmaceuticals demand, even though 70% population lives in the rural areas.
·         Urban population has easy access to medical facilities; hence a growth in the urban population has the capacity to spruce up future demand.

    Rural market opportunity
·         Majority of healthcare personnel and facilities are serving only 30% of the population, which is present in the urban areas.
      Measures to facilitate rural areas and capture market
·         Government recently announced that it will set up more hospitals in the country through public-private partnership (PPP) mode in Tier-II and III cities.
·         The Finance Minister allocated Rs 69,000cr, inclusive of Rs 6,400cr already directed towards the Pradhan Mantri Jan Arogya Yojana. The scheme will be implemented in 1,000 more hospitals in India.
·         Pharma companies have increased spending to tap rural markets and develop better medical infrastructure.
·         Due to the lack of penetration, this is a huge potential market for Indian pharma.
·         Latest data suggests more people in rural areas are visiting doctors than ever before at private and government clinics/hospitals.
·         Private player are funding programs, also run by PHFI, that train general practitioners to treat similar lifestyle diseases in small Indian urban centres, where there’s unlikely to be a specialist. These kind of moves help them establish brand recall and grab market share when the time comes.
·         Increase in insurance coverage in rural areas also sets up rural demand to rise in the coming future.

   Government initiatives and policies to boost healthcare
·         Pharma Vision’ 2020, which aims to make India a major hub for end-to-end drug discovery
·         Under Budget 2020-21, allocation to the Ministry of Health and Family Welfare is Rs 65,012 crore (US$9.30 bn)
·         Medicine spending in India is projected to grow 9-12% over the next five years
·         National Health Protection Scheme under Ayushman Bharat
·         Government expenditure on health increased to US$ 45.96 bn in FY20 - CAGR of 18% from FY16
·         As per Economic Survey 2019-20, Government expenditure (as a percentage of GDP) increased to 1.6 per cent in FY20 from 1.2% in FY15 for health
·         Rural initiatives like Pradhan Mantri Jan Arogya Yojana, Rashtriya Swasthya Bima Yojana, Ayushman Bharat and Sampoorna Bima Gram (SBG) Yojana.
·         Mega bulk drug parks to optimize domestic API manufacturing.
·         Government is planning to relax FDI norms in the pharmaceutical sector
·         The National Health Mission Scheme providing a cover of up to Rs. 5 lakh to 7.31mn poor families in the country.

   Health insurance coverage and the future demand being generated by it
·         The non-life insurance market in India is anticipated to expand at a CAGR of ~24% in FY 2018, to reach a value of INR 4,434 Bn by the end of FY 2023.
·         In addition to growth prospects for the general economy that are far higher than for most developed markets, India has enormous unmet needs for health care and a huge population of uninsured residents. Even among emerging markets, India is one of the least insured countries, with a health insurance penetration rate of only about 20%..


·         The health insurance, thanks to government initiatives, has seen immense growth in the rural sector.

Covid-19 has caused a stir in demand for health insurance:

·         Health insurance related queries are up by 50% since March end.
·         The COVID-19 outbreak is expected to help increase the penetration rate of the health insurance market.
·         Between March and May, number of senior citizens covering themselves under health insurance policies has increased drastically.
·         Earlier, the share of people buying health insurance plans with Rs. 20 Lacs – Rs. 1 Cr sum insured has now increased to 50% from 5% over the last 2 -3 months.
·         Rise in demand for health insurance plans not just in tier 1 and tier 2 cities, but even in tier 3 and tier 4 cities

    Non-communicable and chronic diseases in the country   
      According to WHO, India tops the list of countries with the highest number of diabetics
·         No. of diabetes cases in India expected to increase 100% to 79.4m by the year 2030 from 31.7m cases in 2000.
·         No. of new patients diagnosed with End Stage Kidney Disease is over 100,000 per year.
·         'Lancet Diabetes & Endocrinology' journal found that the amount of insulin needed to effectively treat type 2 diabetes will rise by more than 20% worldwide over the next 12 years.
·         Adults with type 2 diabetes (globally) expected to rise by more than a fifth from 406mn in 2018 to 511mn in 2030.

Rising propensity of developing cancer worldwide
·         Estimated number of people living with the disease: around 2.25 million
·         Every year, new cancer patients registered: Over 11,57,294
·         Risk of developing cancer before the age of 75 years - Male: 9.81% ,  Female: 9.42%
·         India, with a population of 1.35bn, witnessed as many as 1.16mn new cancer cases and 784,800 cancer deaths in 2018.
·         WHO warned that the world may witness a 60% increase in cancer cases over the next two decades if the current trend continues.
·         The global cancer diagnostics market size is estimated to be over USD 12.8 billion by 2025
·         Cancer Market value is expected to grow at a CAGR of 4.5% during the forecast period.
·         Chronic diseases like Cancer are expensive to treat and treatment durations are long. These are strong revenue sources for a lot of pharma companies


      The Indian pharma Industry is on the cusp of a strong growth trend. The industry was already well positioned in terms of costs and market share. With the current pandemic and increased health awareness, India finds itself positioned as one of the chief suppliers of medicine globally. As businesses are hurting due to stalled activity from the lockdown, India comes forward as a cheap and effective medical solutions provider. The Indian government is further making initiatives and pushing the industry. Other factors like health insurance coverage, population demographics and pricing points, are painting a good picture for Indian pharma demand, both in the long and short term.