We've heard a lot about the forays drugmakers are making into the fast-growing Indian drug market: Hiring reps, setting up supply agreements, et al. But what obstacles does Big Pharma face there? Well, PriceWaterhouseCoopers has identified some things companies need to keep in mind when investing in India.

First, infrastructure is lacking in some areas, particularly energy and transportation. "[B]ut the situation is definitely improving as the government deems it an investment need," the firm notes.

Second, think taxes and duties. The government offers tax benefits for drugmakers, such as R&D credits and income-tax exemptions in special economic zones. But in April 2011, the country will introduce a goods and services tax, which could affect drugmakers' supply chain operations.

Finally, the rural market--it's a plum that several companies are targeting, including Sanofi-Aventis and, most recently, the local-yet-Japanese-owned Ranbaxy Laboratories. Some 70 percent of the population lives in rural India, so it has the potential to boost volume considerably. But foreign companies face some hurdles, PwC says: Communication, transportation, and a high penetration of counterfeit meds. So, Big Pharma needs local alliances/partnerships to help it navigate the rural market.

- read the PwC press release
- find a link to the report from PwC

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