New Delhi, June 25 : India's Domestic Pharma Formulations (DomForm) market, which includes branded generic medicines, is expected to more than double and cross Rs 5.5 trillion in the next 10 years at a CAGR of 10 per cent, according to a new report.

The report, by investment banking firm Avendus Capital, showed that currently the market is valued at Rs 2 trillion, with a growth rate of 11 per cent over the last 20 years.

However, with a gradual transition from a primarily doctor-branded prescription model, more stringent quality compliance, and government policies and regulatory measures, the market is expected to make a significant growth.

"We are encouraged by the government of India's Pharma Vision 2047, which is aimed at making medicines more equitable, accessible, and affordable while ensuring high quality and more sustainable manufacturing practices. We believe that the sector will more than double from today, comfortably crossing about Rs 5.5 trillion in value by 2034," the report said.

The report also predicted shifts in channel volumes, with trade generics and the unbranded "Generic Generics", including Jan Aushadhi centres and government hospital procurement, gaining more traction.

"We estimate that the DomForm market will continue growing at 9-10 per cent CAGR in the next 10 years. With the expansion of trade generics and Jan Aushadhi channels, we expect about 30 per cent volume contribution from these in 10 years," the report said.

Although off-patent generics currently account for nearly 100 per cent of the market, because of local manufacturing and process innovations, the prices of medicines are significantly lower than the global average.

Currently, more than 3,000 companies and almost 10,000 manufacturing units exist, yet they come with significant variations in quality standards.

Substandard, spurious and counterfeit drugs account for a staggering 20 per cent of the market, as per official testing.

/IANS