Indian Pharma and healthcare sectors are poised for long-term growth: Centrum

A report by Centrum, following a three-day roadshow with pharma and healthcare experts, highlights that recent government initiatives will significantly boost India's pharmaceutical and healthcare sectors overall. Key measures include the Production-Linked Incentive (PLI) scheme to enhance domestic manufacturing and strengthen resilience against external shocks. The Bulk Drug Parks initiative, which promotes the domestic production of essential drugs and the Promotion of Research & Innovation in Pharma-MedTech (PRIP) scheme, will encourage Indian and global players to invest and expand the production of critical bulk drugs and high-value products. These schemes aim to reduce manufacturing costs, improve industry competitiveness, and ensure a steady supply of high-quality raw materials for pharmaceutical production. The government has allocated US$ 117.8 million (Rs. 1,000 crore) for each Bulk Drug Park, with a total financial outlay of US$ 353.4 million (Rs. 3,000 crore). It offers up to 90% financial support for projects in Himachal Pradesh.

Additionally, the government focuses on enhancing research and development (R&D) in the pharma and MedTech sectors through the PRIP scheme, with a budget of US$ 82.5 million (Rs. 700 crore). This initiative will establish Centres of Excellence at the National Institute of Pharmaceutical Education and Research (NIPER) and support private-sector research with milestone-based funding. The government will also promote the AYUSH (Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy) sector, which has experienced rapid growth, increasing from under US$ 3 billion (Rs. 25,464 crore) in 2014 to US$ 23.3 billion (Rs. 1,97,770 crore) in 2022, a compound annual growth rate (CAGR) of 17%. These initiatives are expected to boost the healthcare sector's growth, with healthcare spending projected to rise from 1.3% to 3% of GDP.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.