Pharma sector needs skill advancement, innovation for further growth

The domestic pharmaceutical industry needs skill advancement, innovation and a strong supply chain with the segment size expected to touch USD 130 billion by 2030, says the Economic Survey 2023-24.

The Indian pharmaceutical market is currently valued at around USD 50 billion and is the world’s third-largest by volume.

“Pharma industry is expected to reach USD 130 billion by 2030. The next leg of growth in pharma necessitates skill advancement, the use of innovation and technology, and the establishment of a strong supply chain,” the survey said.

India’s strength in the pharmaceutical sector lies in being a cost effective and efficient producer of existing off-patent drugs — also called the generic industry, it stated.

The world needs both the innovators and those that can provide drugs at a reasonable price, with the latter playing a vital role in enhancing social benefits.

The development of new drugs aimed at addressing unaddressed health concerns will improve the breadth and quality of healthcare access for the population, while producing better returns on investments, it stated.

“Hence, the strength of the industry lies in having a diverse combination of innovators and generic producers. As we move towards realising the vision of Viksit Bharat, it is vital to promote innovation,” the survey added.

The Economic Survey 2023-24 also noted that the export growth in the sector can be sustained by increasing the capabilities in biopharmaceuticals manufacturing.

The export has witnessed growth in the last 5-6 decades due to consistent innovation, the survey stated.

It noted that India is largely dependent on imports for many antibiotic Active Pharmaceutical Ingredients (APIs) manufactured through fermentation.

“India’s import dependency is largely due to a lack of cost-effective options in domestic API manufacturing compared to imports,” the survey said.

Domestic infrastructure and R&D capabilities have improved considerably in recent years, but challenges remain, it added.