New Delhi [India], December 17 : The recent policy initiatives taken by the government of India will boost Indian Pharma and healthcare sectors in the long run says a report by Centrum post a three-day roadshow with pharma and healthcare experts.
Government initiatives like production-linked incentive (PLI) schemes to boost domestic manufacturing and ensure resilience from external shocks.
Bulk drug parks to promote the domestic production of essential drugs and Promotion of Research & Innovation in the Pharma and MedTech sector (PRIP) scheme along with the promotion of AYUSH as an alternative therapy.
The PLI scheme will ensure greater resilience to external shocks, enforce greater drug security and boost the capacity for domestic production of critical bulk drugs and high-value products. The three supporting schemes announced by the government will incentivise Indian and global players to enhance investment and production in the critical bulk drugs and high-value product sectors.
The common infrastructure facilities created under the Bulk drug parks scheme will promote domestic production of essential drugs. These parks will reduce manufacturing costs, boost industry competitiveness, and ensure a steady supply of high-quality raw materials critical to pharmaceutical production. It will also help India become self-reliant and less dependent on the import of bulk drugs.
The Bulk Drug Park scheme has substantial financial support from the central governmentup to 70 per cent of the project cost in Gujarat and Andhra Pradesh and 90 per cent in Himachal Pradesh.
The Government of India (GOI) has allocated Rs10 billion for each Bulk Drug Park, with a total financial outlay of Rs30 billion.
GOI has introduced a series of other initiatives to bolster the pharmaceutical and medical technology (MedTech) sectors in the country it includes not only enhancing domestic manufacturing but also promoting research and innovation.
To drive research and development (R&D) in the pharma and MedTech sectors, the GOI has launched the Promotion of Research & Innovation in Pharma-MedTech Sector (PRIP) scheme.
With a budget of Rs7 billion, the scheme includes the establishment of seven Centres of Excellence (COEs) at the National Institute of Pharmaceutical Education and Research (NIPER).
These centres will focus on areas such as antiviral and bacterial drugs, medical devices, bulk drugs, phyto-pharma, and biological therapeutics.
Additionally, Rs4.25 billion will be allocated to support private sector research through milestone-based funding, with the government acquiring a 5-10 per cent equity stake in funded entities.
This scheme is expected to enhance public sector capacity and encourage private sector participation in cutting-edge research, addressing critical challenges in the industry.
The government has also decided to promote AYUSH sector, encompassing Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy, which has emerged as one of India's fastest-growing industry. The sector's manufacturing segment has grown from under USD 3 billion in 2014 to USD 23.3 billion in 2022, marking a compound annual growth rate (CAGR) of 17 per cent.
The government's focus on promoting AYUSH in both domestic and international markets is expected to further boost the sector's growth, which is complemented by increasing spending on healthcarelikely to rise from 1.3 per cent to 3 per cent of GDP.
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