Indian Pharma Sector Growth and Healthcare Sector in India: A New Era

Indian Pharma Sector Growth and Healthcare Sector in India: A New Era

The Indian pharma sector growth and healthcare sector in India are witnessing unprecedented momentum as recent policy initiatives by the Government of India are set to reshape the landscape. Key government initiatives, such as the production-linked incentive (PLI) schemes, are designed to boost domestic manufacturing, thus fortifying the sector against external shocks.

Critical Initiatives Fueling Growth

Among the notable measures, the Bulk Drug Parks initiative aims to enhance domestic production of essential drugs. This initiative is expected to reduce manufacturing costs, enhance industry competitiveness, and ensure a stable supply of high-quality raw materials essential for pharmaceutical production. The government has promised substantial financial support, covering up to 70% of project costs in states like Gujarat and Andhra Pradesh, and even 90% in Himachal Pradesh.

Focus on Research & Innovation

The Promotion of Research & Innovation in the Pharma and MedTech sector (PRIP) is another groundbreaking initiative. With a budget allocation of Rs7 billion, this scheme will establish Centres of Excellence (COEs) aimed at addressing critical areas like antiviral and bacterial drugs, medical devices, and biological therapeutics.

• AYUSH Sector Promotion: The government's commitment to the AYUSH sector—encompassing Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy—will further amplify growth.
• Support for private sector research will be enhanced through Rs4.25 billion allocated for innovative projects, with the government acquiring equity stakes in funded companies.

Overall, the Indian government's proactive approach aims to elevate the healthcare sector's contribution to GDP from 1.3% to 3%, paving the way for a robust Indian pharma sector growth.