New Delhi : The investment intentions filed by the industry in terms of Industrial Entrepreneur Memorandum (IEMs) filed by them in the Drugs and Pharmaceuticals sector has grown around 19 per cent in terms of proposed investment value, in the first nine months of 2021 compared to the full year of 2020. The investments intentions into medical and surgical instruments have grown around 25 per cent during the comparable period, higher than the growth in the previous year.
According to the statistics published by the Department for Promotion of Industry and Internal Trade (DPIIT), there are 60 investment proposals signed by the industry between January and September, 2021, to invest around Rs 8765 crore into the Drugs and Pharmaceuticals sector in the country. This, compared to 77 IEMs worth Rs 7376 crore in the 12 months of 2020, is 18.83 per cent higher.
The investment proposals in terms of value, for the nine months account to 2.16 per cent of the total investment proposals worth Rs 4,06,135 crore across sectors, which is also highest from the sector compared to the last two years.
The first nine months of 2021 has seen investment proposals from the industry surpassing the investment intentions filed in the two consecutive years from 2019. The 12 months in 2019 has seen 87 IEMs from the drugs and pharmaceutical industry, with intentions to invest Rs 5195 crore.
The medical and surgical instruments industry has filed 60 IEMs till September, 2021, with intentions to invest around Rs 587 crore into the sector. This is 25 per cent higher compared to the Rs 467 crore investment intentions filed in nine IEMs in 12 months of 2020. This is also the highest growth in investment proposals compared to the previous two years.
In the year 2019, the sector witnessed only three IEMs proposing a total of Rs 167 crore investments in the country.
While all these investment intentions may not be implemented fully over the period of time, it is an indicator to the industry’s market sentiments and expansion plans considering the growth projections.
The Indian pharma industry is expected to grow from the current $41 billion to $65 billion in 2024 and to $120-130 billion by the year 2030, according to the Economic Survey 2020-21. The industry has a $11 billion annual trade surplus and created 2.7 million jobs directly and indirectly in the country, says the Department of Pharmaceuticals.
The country has around 60,000 generic brands covering 60 therapeutic categories and supplies 20 percent of the global generics.
The government has announced $2.98 billion of Production Linked Incentive Scheme for Active Pharmaceutical Ingredients and formulations, three dedicated bulk drug parks apart from Schemes for Medical Devices industry, starting from 2020. In medical devices, the country has a market size of $11 billion including implants, consumables and medical electronics and the sector has been growing at a compound annual growth rate of 9-11 per cent over the period of five years. The market size of medical devices is expected to reach $50 billion by 2025. FDI inflows into the sector have reached $2.2 billion from April 2000 to December 2020. Imports of medical devices are around $5.8 billion, while exports is $2.2 billion.
