FDI Policy
Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of 53 identified critical KSMs/Drug Intermediates and APIs
Scheme for Promotion of Bulk Drug Parks
Production Linked Incentive (PLI) Scheme 2.0
The Cabinet has also approved a PLI 2.0 Scheme for Pharmaceuticals in November 2020 for which a financial outlay of INR 15,000 crore has approved (over the next 5 years). The categories of drugs covered are included below, and further details are to be released.
Category 1
Category 2
Category 3
How do you see the major trends that you witnessed during Covid-19 in the pharmaceutical sector pan out in 2021?
The COVID-19 pandemic has had a profound impact on life and businesses across the world leading to lockdowns in many countries, restrictions on movement, travel, social gatherings, among others. In these unprecedented times, the Indian pharmaceutical industry emerged as a dependable partner by supplying uninterruptedly the life-saving medicines not only in India but across the world and demonstrated tremendous commitment towards patient welfare. It was also a transformational moment for the pharmaceutical industry in India. There is a changing paradigm for access to health in the new normal. Companies are being compelled to examine, re-examine, at multiple levels, the way they do business. Many of those changes may ultimately prove difficult to reverse. At the same time, the world needs effective COVID-19 vaccines and treatments
The IPA-BCG ‘Future of Work’ study highlights the major trends accelerated by COVID-19 pertaining to digitalization in manufacturing, process, commercial, and overall corporate organization. Additionally, there is a changing consumer behavior with a significant acceleration towards teleconsultations and epharmacy. There is an increased uptake of teleconsultations and e-pharmacy sales across the globe and India. Teleconsulting guidelines issued by the Government of India during the lockdown in March 2020 have further provided a much-needed boost to the growth of teleconsulting platforms with both health tech start-ups as well as hospital chains, exploring this channel of care. We need to work on regulatory system to guard the privacy of the individuals while facilitating the growth of digital platforms.
Pharmaceutical industry plays a key role in not only driving better health outcomes but also driving the economic engine of India. The industry contributes $ 41 Billion annually which accounts for approximately 1.72 per cent of India's GDP, as reported by the Department of Pharmaceuticals. The industry has also contributed significantly to the economy by providing employment to approximately 2.7 Million people and generating $ 13 Billion in trade surplus (FY 20). India enjoys a key position in the global pharmaceutical industry. The country is the world’s largest supplier of generics, accounting for 20 per cent of global exports. India supplies over 60 per cent of global demand for various vaccines and 40 per cent of the demand for generic products in the US. The pharmaceutical companies will continue to grow both organically and inorganically through alliances and partnerships. They will continue to focus on improving operational efficiency and productivity.
The pharmaceutical sector has always been driven by knowledge, technology and skills and has a great potential to create new job opportunities. A recent survey showcased life sciences as the most preferred sector that is predicted to attract talent, ahead of IT and FMCG, this year. The growing collaboration between Indian and global pharmaceutical companies will help leverage innovation and scale, resulting in better use of human resources and reduced risk of layoffs.
PLI scheme by the government is a positive and significant step towards creating a sustainable healthcare system. Additionally, another required boost has been observed in the ‘Promotion of Domestic Manufacture of Bulk Drugs Scheme,’ which has already set the motion for bulk drug industry. Implementation of the schemes will be key in achieving the objective of self reliance and incentivising the industry will go long way in creating a stable and sustainable self-reliant healthcare in India. Indian pharma industry not only needs a boost in R&D and innovation to move up the value chain for future but also needs to be supported for enhancing export competitiveness of the industry.
The pharmaceutical industry has played a pivotal role during the unprecedented times of COVID-19. The overall policy ecosystem should help increase thrust on healthcare and build healthcare infrastructure to cater to the societal needs as healthcare is fundamental. In this upcoming budget, the pharma industry will look for incentives in R&D and innovation.
The following three heads need strong support in the Budget:
Moreover, the Union Budget should focus on increasing exports competitiveness of pharmaceutical products through various schemes such as RoDTEP, PLIs, incentivizing R&D and innovation in pharma sector. Pharmaceutical industry is a knowledge driven industry and India needs to move forward to make and discover in India from Make in India. This sector is not only an asset to our country but to the world and has to be given importance in the upcoming budget.
This article was originally published on Invest India
