It is very well known that physical money used to play a crucial role in the Indian pharma business as many companies make use of cash transactions in order to get a hold of the market place. Ab initio, it was unmanageable for the medium and small players to upright a chance in contact with the pharma majors. However, after the Government of India demonetization initiative, the pharma majors are sputtering to preserve the flow of physical money for buying their business partners. As a matter of fact or Govt. Of India initiative, the new players in the drug segment have found a new base for contest. The November 8th, decision has definitely provided a lot of possibilities to the new players in the Indian space.
Other big thing, where the Govt. Of India decision is going to have an effect upon, is cost of domestically sold medicines as more of the industry transactions from now are going through electric, non liquid transactions hence the profits made can’t be hidden by the retailers, whole seller and by drug companies. Furthermore, this act will also bring in the habit of holding invoices as well as bills.
Also there are few practices in the industry where drug companies used to influence the medical practitioners for generating prescription by providing them with the benefits/gifts, foreign trips; other kind of offerings with the effect demonetization physician influencing will no longer going to entertained in the industry. There this definitely helps the small and medium players to compete in the Indian market in a better position.
Local regulation and administration becomes to be easy with this initiative as more direct liquidity will take place in banking, the Indian government will be able to have the a much better control over the pharmaceutical industry. Simultaneously, many sources predict that the price of costly medicines will definitely bring down, which in turn will directly benefit the patients.
To conclude, drug industry looks provide with lot of benefits with the demonetization decision, in near future more eloquence will be brought into the drug segment. Overall, it will be gainful for the patients as well as small, medium and new players in the industry.