A package of about 10 thousand crores has been announced for the Pharma sector. The industry has welcomed this move of the Modi government. After the outbreak of Coronavirus, due to problems of raw materials imported from China for medicines, the government has started preparations to increase its manufacturing in the country.
- Govt announced total Rs 10,000 crore package for Bulk Drug Park
- Around 20% of the world’s generic drugs are manufactured in India
- Every third tablet of medicine sold in the US is made in India.
After the outbreak of Coronavirus, due to problems of raw materials imported from China for medicines, the government has started preparations to increase its manufacturing in the country. A package of about 10 thousand crores has been announced for the pharma sector. The industry has welcomed this move of the Modi government.
The government has said that in the next five years, three ‘Bulk Drug Parks’ will be built in the country with an investment of about Rs 3000 crore.
Apart from this, the government will implement the Production Linked Incentive (PLI) scheme with an amount of about 6,940 crores in the next eight years to promote the manufacturing of drug intermediate, active pharma ingredients (API) raw materials. The plan was approved by the Union Cabinet on Saturday.
Benefit of Bulk Drug Park
This will reduce the Indian pharmaceutical industry’s dependence on China in the manufacturing of medicines. It is important to note that about three-fourths of the raw material required for the production of medicines in the country are imported from China. But in recent months, due to the outbreak of Coronavirus in China, the factories there were closed and due to this, the Indian pharmaceutical industry got overwhelmed.
It was said that if the corona crisis had been stretched in China for a few months, there would have been a severe shortage of medicines in many countries of the world including India. In view of this, the government has now taken steps towards self-sufficiency in raw materials.
India dominates the world’s generic drug market and has around 20 percent share. Every third tablet of medicine sold in the US is made in India.
The industry has welcomed this move of the government. S Sridhar, chairman of the pharmaceutical committee Pfizer, the pharmaceutical chamber of industry chamber FICCI, said, “India’s pharma industry is the world’s leader in generics and is catering to global needs in large quantities.” Made in India medicines, which are also supplied to many developed countries including America, European Union, Japan, are known for their safety and quality. The government’s announcement is welcome and the pharmaceutical companies fully support it.
Welcoming the move, the Indian Pharmaceutical Alliance (IPA), an organization of 24 pharmaceutical companies, said that this is a big step towards strengthening the healthcare ecosystem in the country.