Sandeep Jain, Co-Founder and Joint Managing Director, Akums Drugs & Pharmaceuticals Limited
The Indian pharmaceutical industry is growing at a fast pace and commands over 20% of the global medicine supply chain. India's Finance Minister, Hon'ble Smt. Nirmala Sitaraman, declared its eminent status in a press meet as the 'Pharmacy of the World' some time ago. The pharmaceutical industry of India has played a significant role in reaching its present situation and is expected to reach USD 65 billion by 2024, according to media reports.
To strengthen the current situation of the Indian population and meet their medicinal requirements, initiatives by the Indian Government such as self-reliance and Make in India have fortified the pharmaceutical industry. Its reflection can be seen in the ongoing motivation and promotion of the domestic production of Active Pharmaceutical Ingredients (APIs) under various indigenous initiatives which are actively ensuring the health security for Indians and reinforcing India's standing in the World community.
APIs are known to be the backbone of the Indian Pharmaceutical industry and the reason is APIs are essential components in drug formulation and India has been a prominent player in generic drug manufacturing. However, a substantial portion of APIs used to be imported but in recent years, there has been a noteworthy increase in local production, marking Indian manufacturer’s capability and robust position. I see these achievements as a recognition of the need for self-sufficiency and a reduction in dependence on foreign suppliers. India has shifted gears now to bolster its native API production.
The current scenario is favourable for the pharmaceutical industry, especially the API sector, as it receives a significant boost in research and innovation. Indigenous manufacturing of APIs not only supports the pharmaceutical supply chain but also serves as a catalyst for research and innovation within the sector. Government-supported schemes like Self-Reliant India, Make in India, including PRIP (Promotion of Research and Innovation in Pharma) and PLI (Production Linked Incentive), have motivated companies to invest in cutting-edge research, fostering the development of high-quality products through cost-effective manufacturing processes.
The PLI scheme which is specifically designed to promote domestic manufacturing across various sectors, has been a game-changer for the pharmaceutical industry in India. Such initiatives are also evident in the efforts of Indian pharmaceutical manufacturers and contribute to the current achievements of the entire pharmaceutical industry in India.
India is consistently reducing its dependency on pharmaceutical raw materials and imports by steadily increasing the production of Active Pharmaceutical Ingredients (APIs) within the country. This strategic shift not only strengthens the economic resilience of the pharmaceutical sector but also continually mitigates the risks associated with global supply chain disruptions.
If we discuss the strategy behind this competitive advantage, the advent of native API manufacturing has conferred a cutting-edge advantage upon Indian pharmaceutical companies, by supporting cost efficiency and flexibility. Through streamlined processes and lowered production costs, pharmaceutical companies are now better poised to provide high-quality products at much competitive prices, both in domestic and international markets.
Now, we can better understand the global impact behind the implementation of this strategy. India has consistently been a leading player in the global pharmaceutical market. With a continuous increase in its market share on a global level, the time is approaching when India will undoubtedly lead the way.
The surge in native API manufacturing has positioned India as a pivotal player in the global pharmaceutical market, marking a significant start. India's capability to produce a diverse array of APIs has not only attracted attention for international collaborations but has also established India as a reliable supplier of pharmaceutical raw materials on the world stage. Recently, during the Interim Budget presentation, Finance Minister Smt. Nirmala Sitharaman announced a corpus of 1 lakh crore to offer interest-free or low-interest loans, allowing long-term financing and refinancing to focus on R&D. I found this move to be a game-changer for Research and Development for Pharmaceutical Industry in India.The budget emphasizes promoting research and innovation by integrating "Jai Vigyan - Jai Anusandhan" into the existing "Jai Jawan - Jai Kisan" slogan, showcasing the robust willpower of the government.
To sum up, I'd like to conclude my discussion by emphasizing that the indigenous manufacturing of APIs has played a vital role as a catalyst for the remarkable growth of the pharmaceutical industry in India. With a dedication to self-reliance, strategic government initiatives, and a focus on innovation, the nation is well-positioned not only to fulfill its domestic healthcare requirements but also to make a substantial contribution to the global pharmaceutical landscape and I am considering API as a driving force catalyst behind this transformative journey.
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