Building Self-Reliance: India's Pharmaceutical and Medical Device Sectors

Team FS

11/Mar/2024

Key Points:

The pharmaceutical and medical device sectors play a vital role in healthcare infrastructure, especially during crises like the COVID-19 pandemic.
India's pharmaceutical industry has shown remarkable growth, doubling its manufacturing output from US$28.3 billion to US$70.1 billion between 2013-14 and 2021-22.
Government initiatives, including production-linked incentive (PLI) schemes, aim to boost manufacturing and reduce import dependence, aligning with the "Atmanirbhar Bharat" vision.
The Department of Pharmaceuticals has implemented a US$839.1 million PLI scheme to promote domestic manufacturing of critical bulk drugs, with 48 approved projects contributing to enhanced self-sufficiency.

In the wake of the COVID-19 pandemic, the importance of robust pharmaceutical and medical device sectors cannot be overstated. These industries form the backbone of a country's healthcare infrastructure, providing essential support for preventive and curative healthcare systems. Recognizing their pivotal role, particularly in times of crisis, establishing a stable policy environment to ensure long-term self-reliance in indigenous drug and medical device manufacturing is imperative.

India's pharmaceutical industry stands as a shining example of success, having witnessed exponential growth over the years. From approximately US$28.3 billion (Rs. 2.34 trillion) in manufacturing output in 2013-14, the industry has soared to around US$70.1 billion (Rs. 5.8 trillion) in 2021-22, boasting a compound annual growth rate (CAGR) of 12%. This remarkable trajectory not only surpasses all other manufacturing sectors in the Indian economy but also serves as a global benchmark within the drug and pharmaceutical domain.

Aligned with the vision of "Atmanirbhar Bharat" (self-reliant India), the Indian government has rolled out strategic initiatives to bolster manufacturing in these critical sectors. Among these initiatives are production-linked incentive (PLI) schemes aimed at boosting domestic production and positioning India as a key player in global value chains. These schemes come at a crucial juncture, as the pandemic and geopolitical shifts prompt a reevaluation of global supply chains in medical products.

One notable initiative by the Department of Pharmaceuticals is the successful implementation of a US$839.1 million (Rs. 6,940 crore) PLI scheme focused on reducing import dependence and promoting domestic manufacturing of critical bulk drugs. With 48 approved projects committing to a production capacity of 89,545 million tons per annum, this scheme marks a significant stride towards enhancing domestic production capabilities and ensuring self-sufficiency in the pharmaceutical sector.

As India continues to navigate the complexities of global health challenges, investments in these sectors not only fortify national resilience but also contribute to global health security. With a steadfast commitment to innovation, quality, and self-reliance, India's pharmaceutical and medical device sectors are poised to play an even more significant role in shaping the future of healthcare, both domestically and internationally.

Also Read : India-EFTA Trade Pact: A New Frontier in Economic Partnerships

India and the European Free Trade Association (EFTA) are on the brink of a transformative partnership as they prepare to ink their inaugural Trade and Economic Partnership Agreement (TEPA). This landmark accord heralds a new era of cooperation, marking India's first foray into trade deals with any European nation or bloc.

Also Read : India's Mobile Manufacturing Sector Soars: A Decade of Phenomenal Growth

Over the past decade, India's mobile phone manufacturing sector has undergone a remarkable transformation, witnessing an astonishing 21-fold increase in value to reach US$ 49.3 billion (Rs. 4.1 lakh crore). This growth story owes much to strategic government initiatives, most notably the Production Linked Incentive (PLI) scheme, which has not only attracted global players but also propelled local production to new heights.

Services

Building Self-Reliance: India's Pharmaceutical and Medical Device Sectors

Related News