Indian pharmaceutical industry can achieve a target of double-digit growth by 2030 through a host of measures including regulatory support from the government like increase in budgetary allocations for healthcare and promotion of innovation, a pharmaceutical industry body said.
Setting a coherent pricing policy framework, simplifying regulatory approval processes, creating a separate Ministry of Pharmaceuticals and dedicated zones for creation of medicines, are some of the ways that the government could help the industry achieve the ambitious target of becoming a $120-130 billion industry by 2030, it said.
“We are seeking from the government stable pricing policy. Whatever the government decides in terms of drugs pricing should be kept stable for at least five years, Secretary-General of Indian Pharmaceutical Alliance, Sudarshan Jain said.
The government should also aim to increase expenditure on healthcare from about 1.2 per cent to 2.5 per cent of GDP in the next five years, and to five per cent by 2030, for the industry to grow, he added.
“Ayushman Bharat Scheme that brings 40 per cent of the poor population under state-funded insurance cover also broadens possibilities to all healthcare ecosystem players including pharmaceutical companies,” he said.
As per a report prepared by the IPA, at its current rate of seven to eight per cent CAGR, the Indian pharmaceutical industry is expected to grow about $80 to $90 billion by 2030. With a double-digit growth of 11-12 per cent, the industry can grow about $65 billion by 2024 and about $120 to $130 billion by 2030.
According to Jain, increased accessibility and affordability of healthcare, potential breakthroughs in next-generation innovative products, strong growth in the US market and increased growth in large underpenetrated markets like Japan and China are some of the ways for the industry to grow.
The industry body has also raised the demand for reducing GST on all drugs to a uniform five per cent, he said.
Zydus Cadila CMD Pankaj Patel (a member company of the Alliance) said that innovation remains the focus for the future, and IPA is working in the direction of strengthening the innovation ecosystem in the Indian pharma industry.
“The future is innovation, and IPA has taken innovation as a theme. It is working on innovation, in terms of collaboration between government institutions and industry, and making innovation go to the next level for Indian pharma industry to grow. India has the capacity to develop drugs and sell it to the world,” he said.