Rs 5,000 Crore Initiative Set to Propel India's Pharma and MedTech Sector into Rapid Growth

The scheme intends to increase the pharmaceutical industry's worth from its present level of USD 50 billion to USD 130 billion by 2030. According to reputable government sources, the health ministry will soon unveil a comprehensive five-year plan aimed at supporting research and development (R&D) in the pharmaceutical and medical technology industries.

An allocation of Rs 5,000 crore would be made for this project throughout the course of FY24–28. The scheme's main objective is to increase the pharmaceutical industry's worth from its current level of $50 billion to $130 billion by 2030. The government intends to build seven centres of excellence as part of this initiative in important cities including Ahmedabad, Kolkata, Raebareli, Hajipur, Guwahati, Hyderabad, and Mohali. These centres will act as focal points for cutting-edge research and development initiatives, encouraging cooperation amongst stakeholders in business, academia, and government.

Financial assistance will be provided to private companies conducting in-house research and development in key fields like new drugs, gene therapy, complex generics, biosimilars, medical devices, anti-microbial resistance, and orphan drugs in an effort to foster innovation and speed up progress. According to government officials, the programme will bring in an additional Rs 17,000 crore in investment, further fostering the sector's growth and development. In addition, the nation wants to introduce 30 new products to the market over the course of five years, putting an emphasis on drug security, independence from imports, and self-reliance.

It is anticipated to give startups and micro, small, and medium-sized businesses (MSME) a considerable boost while fostering an atmosphere that encourages innovation and research in the pharmaceutical and medical technology industries. The plan calls for the combination of data analytics and artificial intelligence (AI) to speed up the drug development process. The government also wants to create a regulatory ecosystem that makes it easier to do business, minimises the burden of complying with rules, and streamlines clearance procedures. It also wants to evaluate pertinent laws and regulations and make any required modifications. Both privately held businesses and those owned by the government will get support in the form of financial and non-financial incentives to encourage innovation. The creation of three committees will be necessary for the policy's effective execution.