Next phase of pharma sector growth requires innovation: Economic Survey

Economic survey on pharma: The Economic Survey 2023-24, presented in Parliament on Monday, highlighted the need for skill advancement, innovation, and a robust supply chain to drive the domestic pharmaceutical industry's growth, with the segment projected to reach $130 billion by 2030.

Currently valued at approximately $50 billion, the Indian pharmaceutical market is the world's third-largest by volume.

"The pharmaceutical industry is expected to reach $130 billion by 2030. The next phase of growth in pharma necessitates skill advancement, the utilisation of innovation and technology, and the establishment of a strong supply chain," the survey stated.

India's pharmaceutical sector's strength lies in its cost-effective and efficient production of off-patent drugs, known as generics.

The global market requires both innovators and producers who can offer affordable drugs, with the latter playing a crucial role in enhancing social benefits.

Developing new drugs to address unmet health concerns will improve healthcare access and quality while yielding better returns on investments.

"The industry's strength lies in its diverse mix of innovators and generic producers. As we move towards the vision of Viksit Bharat, it is vital to promote innovation," the survey added.

The Economic Survey also noted that sustaining export growth in the sector requires enhanced capabilities in biopharmaceutical manufacturing.

Exports have grown consistently over the past five to six decades due to ongoing innovation, the survey noted.

However, India remains heavily reliant on imports for many antibiotic Active Pharmaceutical Ingredients (APIs) manufactured through fermentation.

"India's import dependency is largely due to a lack of cost-effective domestic API manufacturing options compared to imports," the survey opined.

While domestic infrastructure and R&D capabilities have significantly improved in recent years, challenges persist.

(With PTI inputs)