CHENNAI: Health ministry is set to introduce a comprehensive five-year policy aimed at bolstering research and development (R&D) in the pharmaceutical and medtech sector, according to top government sources.
This initiative will involve an allocation of Rs 5,000 crore, spanning from FY24-28. The primary goal of the scheme is to propel the value of the pharmaceutical industry from the current $50 billion to $130 billion by 2030.
As part of this policy, the government plans to establish seven centres of excellence in key cities such as Ahmedabad, Kolkata, Raebareli, Hajipur, Guwahati, Hyderabad, and Mohali. These centres will serve as hubs for advanced research and development activities, fostering collaboration between industry players, academia, and government entities.
In a bid to encourage innovation and accelerate progress, financial support will be extended to private companies engaged in in-house research and development across crucial areas such as new drugs, gene therapy, complex generics, biosimilars, medical devices, anti-microbial resistance, and orphan drugs.
Government sources indicate the scheme will attract an additional investment of Rs 17,000 crore, further propelling growth and development in the sector. Moreover, the country aims to launch 30 new technologies or drugs into the market within a five-year period, emphasizing self-reliance, drug security, and reduced dependence on imports.
It is expected to provide a significant boost to start-ups and micro, small, and medium enterprises (MSME), creating an environment conducive to innovation and research in the pharma and medtech sectors. The scheme envisages the integration of artificial intelligence (AI) and data analytics to expedite drug development cycle.
The government also aims to establish a regulatory ecosystem that simplifies processes, streamlines clearances, improves the ease of doing business, reduces compliance burden, and reviews relevant laws and regulations to enable necessary amendments.
To incentivise innovation, both private and government-owned companies will receive support in the form of fiscal and non-fiscal incentives. The successful implementation of the policy will involve the formation of three committees.
Plans ahead