Edited By: Oindrila Mukherjee
Last Updated: February 03, 2023, 08:00 IST
Finance minister Nirmala Sitharaman had announced the new programme to promote R&D in pharmaceuticals during her budget speech. (Representational image: REUTERS/Danish Siddiqui/File)
A government official said the policy will focus on supporting industry-driven research in pharmaceuticals and medical devices through centres of excellence
The Narendra Modi-led government is sketching a new policy – from gene therapy to precision medicine – to spur research and innovation in the pharmaceutical sector in India. “A new programme to promote research and innovation in pharmaceuticals will be taken up through centres of excellence,” finance minister Nirmala Sitharaman said in her budget speech.
With inputs from the ministry of health and family welfare, the department of pharmaceuticals – under the ministry of chemicals and fertilisers – is fine-tuning the programme.
“The policy, which is being designed, will focus on supporting research in pharmaceuticals as well as medical devices,” a government official told News18, requesting anonymity.
From setting up centres of excellence to encouraging industry-driven research, it will have a multi-pronged approach for which key areas have been identified.
“The top focus areas of the policy will include drug discovery, innovative drug discovery delivery systems, precision medicine, advanced medical devices and gene therapy,” the official said, adding that, once designed, the policy will go through approvals on budget requirements.
Industry cheers the move
According to industry data available, the R&D spending by Indian drugmakers hovers around 7 percent to 10 percent of the overall expenditure. This is quite low when compared to more than 35 percent spending on R&D in China and the US.
The hand holding by the central government may encourage the industry to spend more on research, which involves huge investment and commitment. According to “The Indian pharmaceutical industry is a knowledge-driven sector with R&D being core to its growth,” said Sudarshan Jain, secretary general of Indian Pharmaceutical Alliance (IPA), which is a lobby group representing domestic drugmakers.
“The Union Budget 2023 aims to provide stimulus towards innovation with the announcement of the promotion of research and innovation programmes in pharmaceuticals through centres of excellence,” he said while noting that in the financial year 2023, healthcare expenditure on GDP has gone up from 1.4 percent in FY19 to 2.1 percent.
Experts believe that the R&D policy is the need of the hour as the Covid pandemic has emphasised the need for research, development, storage and distribution networks in the healthcare and medical sector.
“Since Covid-19, India has proven its capability in research and has already earned the sobriquet of being the pharmacy of the world. With the boost to pharma research and innovation, in this year’s budget, India is set to make a bold move in the promotion of drug discovery,” said Siddhartha Nihalani, co-founder at Practo.
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