Pharma supply chain requires booster dose
New Delhi, July 22
The Economic Survey 2023-24 tabled by the government states that the domestic pharma industry is presently valued at $50 billion and is expected to reach $130 billion by 2030.
The report said that for the next leg of growth, the industry requires innovation, skill advancement and the establishment of a strong supply chain. It said that India has become a net exporter of bulk drugs. During FY24, the value of export and import of bulk drugs was Rs 39,632 crore and Rs 37,722 crore, respectively.
“Export growth occurred due to consistent innovation in the past 5-6 decades. The export growth can be sustained by increasing the capabilities in biopharmaceuticals manufacturing,” the report said.
It also said that India’s strength in the pharmaceutical sector lies in being a cost-effective and efficient producer of existing off-patented drugs — also called the generic industry. The world needs both innovators and those who can provide drugs at a reasonable price, with the latter playing a vital role in enhancing social benefits.
Hence, the strength of the industry lies in having a diverse combination of innovators and generic producers, the report added.
One of the challenges which the survey pointed out is that presently, India is largely dependent on imports for many antibiotic Active Pharmaceutical Ingredients (APIs) manufactured through fermentation.
“The R&D expenditure in the drugs and pharmaceutical sector in India averaged around 5 per cent of the sales turnover in FY20 and FY21,” the report said.
