The COVID-19 pandemic has changed the variables of equations of the global pharma industry. The current crisis could be a blessing in disguise for Indian Pharma and a valuable opportunity to again become a preferred supplier of pharma products for the world. In the ongoing market turmoil, Indian Pharmaceutical companies have emerged as safer bets for investors. But the pandemic has raised various other challenges. Our dependency on other countries for raw material got exposed as India imports 90% of Active Pharmaceutical Ingredients (API) and almost two-thirds of it from China.
This necessitates the Government to set up bulk drug parks as well as other stimulus measures to boost local manufacturing which includes activating plant which was earlier closed due to strong scale competition from China. The Union Government cleared a slew of measures to promote the manufacturing of APIs and KSMs within the country. This includes a 3,000-crore project to set up three bulk drug parks, as well as a 20% financial incentive for the next 6 years for manufacturers to make 53 critical bulk drugs, which are in turn used to make medicines. The above scheme is expected to reduce the manufacturing cost of bulk drugs in the country and dependency on other countries for bulk drugs.
Apart from Government initiative, unlocking India Pharma Industry growth potential also needs to construct an ecosystem for pharma that would be smarter, future-ready, and innovation-driven. It must be customer-centric and create value beyond the pill, a fool-proof strategy to meet regulatory requirements and for the brand, where reputation is more important and vulnerable than ever.