PTI, Jul 04, 2019, 08.37 PM IST

NEW DELHI: Indian pharmaceutical industry is likely to grow by 11-13 per cent in the current fiscal, rating agency Icra said on Thursday. 

"The growth trajectory for the Indian pharmaceutical industry is likely to remain at 11-13 per cent in FY2020, on the back of healthy demand from the domestic market, given increasing spend on healthcare along with improving access," Icra said in a release. 

This along with moderation in pricing pressure for US market, new launches and market share gains for existing products and consolidation benefits will drive growth in FY2020, it added. 

"The growth would however be constrained by regulatory interventions such as price controls, compulsory genericisation and United States Food and Drug Administration (USFDA) oversight for manufacturing deficiencies," the release said. 

According to an Icra report covering a sample of 21 firms in the industry, the growth during FY2019 stood at around 12 per cent. 

Icra Corporate Ratings Vice President & Co-Head Gaurav Jain said: "The growth in FY2020 is expected to be supported by 4.2 per cent WPI linked price hike for National List of Essential Medicines (NLEM) portfolio". 

The credit metrics of leading pharma companies are expected to remain stable in view of future growth prospects in regulated markets and relatively strong balance sheets, he added.