The Economic Importance Of The Pharmaceutical Industry
The pharmaceutical industry's work pervades all parts of a country's economy, both domestic and international. This emphasizes its significance in relation to the broader concept of development. Let's take a look at the pharmaceutical industry's economic importance in this blog. #ThinkWithNiche
The pharmaceutical business has become more important than ever since the outbreak of the epidemic. Given the importance of the products produced by the pharmaceutical sector, it has historically been a key part of economies. India, in particular, is a case in point. the pharmaceutical industry has seen a massive boost over the last decade as Pharma companies in India are now getting more and more into clinical research and vaccine development.
Releases Pressure From The Healthcare Industry
Taking a deep dive into history, the discovery of Penicillin by Alexander Fleming was an accident. However, upon its discovery, the pain and sickness of a large number of people were eradicated.
The following example demonstrates how the healthcare and pharmaceutical businesses are inextricably linked. While the pharmaceutical sector invests in research and development, there is no immediate need for it. It can, nevertheless, be seen as an industry that primarily produces to meet the needs of the healthcare business. As a result, it has the capacity to relieve the stress that the healthcare business is under.
More Life Expectancy
It's only reasonable that the pharmaceutical sector would play a role in extending people's lives. The pharmaceutical business was determined to be responsible for an increase of 73 percent in worldwide life expectancy between 2000 and 2009. In India, the average life expectancy was 57.84 years in 1990. As of 2018, he has been 69.42 years old. While the retirement age is determined, such improvements in life expectancy can reduce per capita income in the short run. Increased life expectancy leads to improved reproductive health in the long run. As a result, the country's population will grow, resulting in a rise in the number of people who are able to work.
Local Pharmaceutical Production: A Pathway to Development
Local Pharmaceutical Production, a strategy introduced by UNIDO (United Nations Industrial Development Organization), pushes developing countries to produce Pharma goods in their own countries. It can be seen that a majority of countries leading the pharmaceutical industry are developed. This can be attributed to higher investments in the industry. As a result, developed countries, which can afford to buy goods for a higher price, do not have to as their production is domestic. This creates inequality in access to affordable resources between developed and developing/under-developed countries.
To close this gap, UNIDO advises developing countries with sufficient resources to enhance their pharmaceutical industries to strive towards self-sufficiency. These countries will be able to offer their products and raise GDP as a result of the same domino effect. India is a prime example of this phenomenon. Despite being a developing country, India ranks 3rd in the countries with the best pharmaceutical industry, among a list of developed countries. Growing the economy through this strategy can be a pathway to development for developing countries and can bridge the gap of having access to resources.
The preceding points demonstrate the enormous economic influence that the pharmaceutical business may have. It emphasizes the relevance of it, not merely in terms of higher living standards and a healthier population. However, it is also significant in terms of economic growth.