New Delhi
With India aiming to move up the value chain and encourage “Make in India”, the Pharmaceuticals department has sought Rs 1,500 crore budgetary support from the Finance Ministry during FY17 for technology upgradation and SMEs. Sources say the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers has requested for Rs 500 crore each for upgradation of technology and National Institute of Pharmaceutical Education and Research (NIPER). The pharma department has also sought Rs 500 crore for encouraging the small and medium enterprises.The department is already drawing up a separate plan for bulk drugs.DoP has submitted its future planning to the Prime Minister’s Office in which it emphasised clearly on the need to complete the delayed projects including the New Bulk Drug policy and the Jan Aushadhi scheme. The government has also underscored on improving the research and development in its vision plan stating that there is a need for convergence and synergizing various ministries for development of drug discovery in India. Branded generics dominate the pharmaceuticals market, constituting nearly 70 to 80 per cent of the market. India is the largest provider of generic drugs globally with the Indian generics accounting for 20 per cent of global exports in terms of volume. According to India Ratings, the Indian pharmaceutical industry is estimated to grow at 20 per cent compound annual growth rate (CAGR) over the next five years and outperform the global pharma industry, which is set to grow at an annual rate of 5 per cent between the same period. Over 500 Indian pharmaceutical manufacturing facilities registered with the US Food and Drug Administration (FDA), highest for any country outside the US.Presently the market size of the pharmaceutical industry in India stands at $20 billion. IBEF estimates the Indian pharmaceutical market size to grow five times to $100 billion by 2025, driven by increasing consumer spending, rapid urbanisation, and raising healthcare insurance among others.
