Pre-Budget Quote on India's Pharmaceutical Industry Transformation

Budget 2024 should accelerate the pace of life-sciences innovation & R&D
Low-cost financing schemes can enable private players to upgrade and add diagnostic infrastructure in tier 2 and 3 geographies

India

healthysoch

New Delhi, January 18, 2024:

“India’s pharmaceutical sector has rightfully earned the title ‘pharmacy of the world,’ thanks to its extensive production of generic medications. The industry is now poised for a transformative leap – evolving into a global hub for innovative products and sustainable pharmaceutical manufacturing.

Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance:

India has played a pivotal role in shaping global health outcomes by providing affordable quality-assured medicines. Today, the Indian pharmaceutical industry is at the cusp of change. The Indian pharma sector aims to achieve USD 120–130 by 2030 and USD 400-450 by 2047. To achieve this vision, the Union Budget 2024-25 should accelerate the pace of innovation and R&D. The announcement of the Promotion of Research & Innovation Program (PRIP) Scheme in 2023 was a positive step to spur innovation. Given the high risk, long gestation period and low success rate in research, there is a need for continuous investments. Therefore, the budget 2024-25 should outline conducive policies that provide benefits in terms of both direct and indirect taxes and also facilitate ease of doing business for the pharmacos.

The year 2024 is likely to witness the initial results of the various initiatives to augment India as a reliable supplier of medicines. Policy stability and continuity will be fundamental to propel the sector’s growth. India is poised to move to “Discover and Make in India” from “Make in India”, making India the custodian of healthcare of the world.

Ameera Shah, Promoter and Managing Director, Metropolis Healthcare:

Amid the fast-changing healthcare landscape and with COVID-19 once again in the spotlight, the upcoming Union Budget for 2024-2025 holds significant importance in strengthening India’s healthcare ecosystem. The forthcoming budget should serve as a driving force, channelling investments towards critical areas such as innovation, research and development, technology, upgrading healthcare infrastructure, and bolstering patient safety measures. Given the escalating burden of Non-Communicable Diseases (NCDs), we emphasize the necessity for regular and inclusive screening and diagnostics programmes along with more skilling courses for health professionals to attract as well as upskill talent in the diagnostic space. Additionally, we strongly advocate for the government’s consideration to implement a 0% GST on diagnostic services and facilitate refunds for GST paid on inputs. Recognizing that 60% of India’s diagnostics are reliant on imports, it becomes paramount for the government to rationalize import tariffs on healthcare products. Low-cost financing schemes can enable private players to upgrade and add diagnostic infrastructure in tier 2 and 3 geographies. These initiatives will not only enhance accessibility and affordability but also lay the groundwork for a robust healthcare ecosystem that can effectively combat present and future healthcare challenges.

Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare & President, NATHEALTH:

As India navigates the critical path of healthcare reform, NATHEALTH has presented a comprehensive set of budget recommendations to the government, targeting transformative changes. Our proposals emphasize the need to bridge regional healthcare disparities through inclusive and innovative strategies. We are advocating for an increase in healthcare spending to 2.5% of GDP and the rationalisation of the GST framework. Additionally, we aim to enhance the medical value travel segment by addressing the MAT credit issue and strengthening the healthcare value chain, which is essential for driving economic growth and creating new job opportunities. A key focus should be on building local capabilities to deliver healthcare services even in the most remote regions, alongside the localization of the healthcare value chain. Equally important is the capacity building and training of healthcare professionals, which is crucial to cater to our nation’s increasing healthcare needs. These measures are fundamental to developing a resilient and efficient healthcare system in India

Dr Krishna Prasad Chigurupati on India’s Pharmaceutical Industry Transformation:

To realize this vision, the Indian government needs to implement focused strategies. These include creating innovation zones offering incentives and infrastructural support, encouraging public-private partnerships to combine expertise and resources, and boosting funding for advanced drug research and development. Streamlining regulatory pathways to expedite approvals for novel treatments and investing in educational initiatives to develop a workforce adept in pharmaceutical innovation are also key. These initiatives are expected to usher in a new age of Indian pharmaceutical leadership, characterized by groundbreaking R&D.

India’s potential in sustainable manufacturing is immense, set to substantially contribute to the fight against climate change. With the manufacturing sector projected to add 800-900 billion to the GDP in the next 4-5 years, India is on the brink of revolutionizing manufacturing, integrating sustainability with cutting-edge science and technology. This approach is critical in addressing the global climate crisis.

Embracing ambitious renewable energy and green hydrogen projects, India is gearing up to be a leader in sustainable product manufacturing. This demonstrates the country’s commitment to sustainable development, economic growth, energy independence, and leading the charge in global decarbonization. Innovations in renewable energy, Electrolyzer, green molecules, biobased manufacturing, and advancements in Carbon Capture, Utilization, and Storage (CCUS) are just a few areas where we need to accelerate progress. With the right policies and initiatives, India can transform these potentials into reality, securing its position as a global hub for sustainable manufacturing.”

Achal Saran Pande, Partner at Vector Consulting Group:

‘India’s pharmaceutical industry, often referred to as the ‘Pharmacy of the World,’ faces a dual challenge. Recent government initiatives to strengthen regulations and amend export policies are commendable steps forward. These actions demonstrate the government’s commitment to address issues of substandard and counterfeit drugs, both domestically and globally. However, the journey to becoming a global pharmaceutical leader requires sustained efforts. Long-term success will depend on not just immediate fixes but also structural reforms, including a single unified regulatory framework, process-based inspections, and a central database of errant manufacturers. There is also a need for capacity building to deal with a large number of small firms in the country. India has the potential to lead the world in pharmaceuticals, but the path must be paved with unwavering dedication to quality.’