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Govt Rolls Out Rs 5,000 cr Scheme For
Innovation In Pharma, Medtech
Union Minister of Health and Family Welfare Mansukh Mandaviya
launched the Rs 5,000 crore Promotion of Research and Innovation in Pharma and
MedTech sector (PRIP) scheme, which aims to transform India’s pharma medtech
industry from a cost-based one to innovation-based.
The scheme aims to strengthen research infrastructure in
India, the third largest pharmaceutical industry in the world by volume, with a
current market size of around $50 billion.
Terming it as a clarion call for Aatmanirbharta in the pharma
sector, Mandaviya stressed that India needs a strong and vibrant research
environment. This will help it become the world leader in the pharma and medtech
space.
“It’s not that we do not have research in India, but the
multinational companies invest 20-22 per cent of their profits into research and
development (R&D) whereas an Indian company invests around 10 per cent”, he
said.
The Indian pharma industry has largely remained confined to
generic drugs, where it is holding global leadership.
“In 2021, R&D investments by the top 10 Indian pharma
companies amounted to around 7.2 per cent of their sales. There is a need to
increase R&D expenditure in the country by further promoting research and
innovation,” a notification dated August 16 had said.
Secretary general of the Indian Pharmaceutical Alliance (IPA)
Sudarshan Jain said that PRIP is an important milestone for India. “It would
encourage India’s pharmaceutical companies and foster a vibrant ecosystem for
R&D. Overall, this is a step towards ‘Make and Discover in India’ from ‘Make in
India’.”
The scheme comes at a timely juncture as the global medical
devices market is projected to grow from $455.34 billion in 2021 to $657.98
billion in 2022-2028. This is a compound annual growth rate (CAGR) of 5.4 per
cent.
India accounts for only 1.5 per cent of the global medical
devices market, while having 8 per cent share of the global MedTech R&D
workforce.
A recent report of the Pharmaceutical Exports Promotion
Council of India suggested that Indian pharma exports could surge to $24 billion
in FY24, an increase from $23 billion in Fy23.
“The PRIP scheme will undoubtedly catalyse the growth of
innovative MedTech portfolios in India. The industry is encouraged by the
government’s focus on R&D as it will aim to utilise India’s existing strengths,”
Pavan Choudary, chairman, Medical Technology Association of India, said.
The PRIP scheme has two main components — the first one would
focus on infrastructure building.
It includes establishing ‘centres of excellence’ in seven
campuses of National Institutes of Pharmaceutical Education and Research (NIPER)
at a tentative cost of Rs 700 crore over five years.
The second component would include financial assistance to
large industries, micro, small and medium industries (MSME’s) and startups. They
will carry out research in collaboration with academic institutions as well as
for in-house R&D. Around Rs 4,250 crore has been kept aside as financial outlay
for this component.
“Earlier, strict rules prohibited small players from
conducting any medical research. But with this scheme, the government has opened
the doors for medical research and device technology to startups and MSMEs,” the
minister added.
(
https://www.business-standard.com/economy/news/govtlaunches-rs-5k-cr-scheme-to-boost-innovation-in-pharmamedtech-sector-123092600677_1.html
, September 26, 2023).
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