Despite a fall in the economic market, the pharmaceutical markets of India have taken a flight in the last two quarters of FY20-21. In fact, the current market statistics say that it is going to rise further as there are plenty of opportunities observed for pharma product manufacturing in India.
To analyse the domestic capabilities and productivity of the country’s economy, India has set certain policies as per the Production-Linked Incentive (PLI) scheme. The government believes that the scheme will drive as an incentive for local pharma product manufacturing units to build around better processes for API industries and basic pharmaceutical products.
Opportunity to be the Next API Hotspot in the world
India has the opportunity to turn into the next API hotspot on the global level since the 21st century has been a testimonial to see the amalgamation of entering into bio-pharma. To boost the vision, the government is working harder to engineer domestic API manufacturing sector to make the nation truly Atmanirbhar for future economic outcomes.
Feasible Landscape for Setting Pharmaceutical Operations
The coronavirus restrictions on the import-export from China have led several global pharma manufacturers to reconsider their operations to a different country. Since China manufacturing has been amongst the low cost manufacturing countries, India can stand up to be the second alternative after China. Also, the country is well positioned to meet the global requirements for contract development and manufacturing organisation (CDMO), medicines and novel drugs formulation and API development.
Probability as per 2021 Budget Plan
To meet the API industry framework, the government is planning to set up R&D centres to train pharma products manufacturers in India with stronger industry interactions and modules. It is has also started to include such business models in R&D excellence centres as a part of academics.
India is expected to set up necessary infrastructures for universities, training, research centres, startup incubators and accelerators. These measures will be taken to develop Indian Pharmacopoeia (IP) domestically.
On the other hand, Industry experts are looking forward to the government to declare a holistic measure that aligns with Katoch Committee recommendations, as per submitted in the Feb 2015 report. The report highlights that the key requirement for the API industry involves basic infrastructure such as availability of land, water, electricity, and state of art facilities such as testing facilities, ETPs, etc.
To meet these requirements, the Govt. is taking necessary steps to encourage basic chemical sector in the country. They are more likely taking measures to develop a common infrastructure to integrate large scale clusters of both chemical and pharmaceutical products in India. This has promoted potential private sectors to participate.
Scope 2021 and beyond for the Pharma Sector
Considering cutting edge infrastructure that meets the Hyderabad Pharma City, several domestic and private companies can leverage the benefits of basic utilities. As a result, several sub-domain industries in the sector will be able to cover the cost of the service accessed as per usage. In the coming five years, industry experts are also working out measures to subsidize electricity cost for API based manufacturing sector.
To franchise Atmanirbhar Bharat, the Govt. must initiate incentives for local buyers, design longer moratoriums for common infrastructure projects and design extended tenure for repayment of loans. They should also look at tax rebates, relaxations and holidays for developers and participants to reinforce development to the next level. This will stimulate developing essential API infrastructures across the country.