LEADS 2020: Why it is the right time to invest in pharma sector in India

Union Minister for Chemicals and Fertilizers DV Sadananda Gowda has said India is one of the largest manufacturers and exporters of generic medicines across the world.

During the initial phase, he said, HCQ and Azithromycin were identified as one of the medicines under treatment protocol for covid-19 in emergency cases.

Referring to India supplying these medicines to more than 120 countries across the world; he underlined that India thereby earned the reputation of a reliable supplier of medicines.

Gowda informed that India is the only country with the largest number of US-FDA-compliant Pharma plants (more than 262 including APIs) outside of the USA with exports of $ 20 billion worth of pharma products to various countries including high standards complying countries like the US and Europe.

Addressing the virtual Latin America & Caribbean session on ‘Reimagining Distances’, during LEADS 2020, organized by FICCI, Gowda said that the Indian pharma sector can grow to a $ 65 billion industry by 2024.

"We have recently launched schemes for the development of seven mega parks—three bulk drug parks and four medical devices parks across the country. New manufacturers will be eligible for the Production Linked Incentive (PLI) Scheme under which they will be eligible for financial incentives on basis of their sales for the first 5-6 years," Gowda said.

The Minister further emphasized that this is a very- very good time to invest, and set up a manufacturing base in India in the pharma sector.

"One can enter the Indian market through Joint Ventures also. The advantage is that you can get access to big markets like the domestic Indian market, US, Japan, EU, and South East Asia through India as far as the pharma sector is concerned. Anybody can contact my office if they are interested in the Indian pharma sector, we will provide all possible facilitation and hand-holding," he stressed.

Gowda also said that the market size of the Chemicals & Petrochemicals sector in India is around 165 billion dollars. The size is expected to grow up to 300 billion dollars by 2025.

This presents a huge opportunity in the Chemical sector of India. For example, to meet the growing demand India will need 5 crackers by 2025 and an additional 14 by 2040.

These crackers alone will require a cumulative investment of 65 billion dollars. To attract foreign participation, he said, Government of India is revisiting policies for the chemical and petrochemical sector.