Indian Brand Equity Foundation (IBEF) and Pharmexcil today announced at CPhI Worldwide India’s plans for growth and its commitment to lowering the cost of medicines globally- forecasting the country will retain its explosive growth in generics exports (24 percent for last four years) and commitment to lowering the cost of vital medicines through its development expertise.
In 2012, India was recognised by UNICEF’s Supply Annual Report as the largest supplier of generics globally and the Government of India and Pharmexcil jointly predict that the Country is now at a transformative stage in its development, having created a conducive regulatory and business environment for fostering innovation and growth.
This year alone, India’s pharma exports stand at some $14.7 billion (2012-2013), registering a growth rate of 11 percent, with 55 percent of exports heading to highly regulated western markets. It is in the developing economies where India is single handedly improving access to life-saving medicines. The Indian government has set a target of $25 billion for pharmaceutical exports by 2016.
In support of these goals, Indials government has already put in place supportive initiatives with the goal of cementing the country’s position as the Pharmacy of the World. The government of India has made tax breaks available to the pharmaceutical sector and a weighted tax deduction of 150 percent for any R&D expenditure incurred. They have also introduced 19 dedicated Special Economic Zones to help stimulate pharma sector investment across the Country. As a result of these initiatives, it is predicted that R&D expenditure will continue to grow at an annualized rate of nearly 20 percent for the next few years.
“During the last three years India’s exports of pharmaceuticals have been growing at 17 percent. We are expecting a CAGR of around 20 percent in the next five years,” said Dr. Appaji P V, director general, Pharmexcil.
Sustaining this explosive growth has been a commitment to nurture the next generation of scientists and the Department of Pharmaceuticals has set aside $478.4 million to set up 10 more National Institute of Pharmaceutical Education and Research (NIPER).
“India’s pharma industry has undergone a sustained period of consolidated expansion, thanks to the Government’s ability to facilitate policies and economic conditions that have fostered growth. This development is timely. When nations across the globe are grappling with increased resource requirements for growing healthcare needs, Indian pharma offers credible and affordable healthcare solutions. It is working in niche space and we would like to create better and deeper understandings of Indian pharma amongst more and more countries and communities to evaluate, adopt and fulfil their healthcare commitments to the people at large,” said Aparna Dutt Sharma, CEO of IBEF.
“What is most remarkable about growth in our export of generics is not just the sheer numbers involved but thanks to our expertise, quality standards and cost effective manufacturing techniques, we have also been able to lower the cost of vital medicines in the developing world. The cost of HIV/AIDS treatment was lowered to $400 per year from $12,000,” said Mr Sudhanshu Pandey, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, India.
Date: October 21, 2013
Source: De Facto
Filed Under: Drug Discovery