India's pharmaceutical sector is being urged to enhance its focus on high-value products, including Active Pharmaceutical Ingredients (APIs), according to economists who referenced a recent NITI Aayog report. The report highlights India's strengths in generic medicines and vaccines but calls for a strategic shift to boost exports of higher-value pharmaceuticals.
Economist Ved Jain emphasized the need for substantial investment in research and innovation to develop basic drugs and manufacturing facilities. He advocates for robust Production Linked Incentive (PLI) schemes aimed specifically at high-value pharmaceuticals, suggesting that such initiatives could significantly enhance India's export capabilities.
The NITI Aayog report indicates that while India excels in manufacturing formulations and generic drugs, it must dismantle existing regulatory barriers and increase production of high-value products to compete globally. Jain also pointed out that India's various free trade agreements could facilitate this transition, provided that regulatory challenges are resolved.
The existing PLI scheme has already shown promise, generating over Rs 3 lakh crore in sales and attracting substantial investments, exceeding initial targets. However, as the global pharmaceutical market increasingly gravitates towards biologics and advanced therapeutics, India’s footprint in these high-value segments remains limited, necessitating urgent action to capitalize on emerging opportunities.
This shift not only aims to bolster India's position in the global market but also addresses the critical need to reduce dependency on imported bulk drugs, which is vital for the nation's self-sufficiency in healthcare.