The central government is developing a new policy to promote research and innovation in India’s pharmaceutical sector, ranging from gene therapy to precision medicine.
“A new programme to promote research and innovation in pharmaceuticals will be implemented through centres of excellence,” said finance minister Nirmala Sitharaman in her budget speech.
The policy being designed will focus on supporting research in pharmaceuticals as well as medical devices, said the government official.
It will take a multi-pronged approach, from establishing centres of excellence to encouraging industry-driven research, and key areas have been identified.
“The policy’s top focus areas will be drug discovery, innovative drug discovery delivery systems, precision medicine, advanced medical devices, and gene therapy,” the official said, adding that the policy, once designed, will go through budget approvals.
Industry cheers the move
According to available industry data, R&D spending by Indian drugmakers ranges between 7% and 10% of total expenditure. This is quite low when compared to more than 35% R&D spending in China and the United States.
The central government’s hand holding may encourage the industry to spend more on research, which requires a significant investment and commitment. “The Indian pharmaceutical industry is a knowledge-driven sector, with R&D at the heart of its growth,” said Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance (IPA), a lobbying group representing domestic drugmakers.
The Union Budget 2023 aims to stimulate innovation by announcing the promotion of research and innovation programmes in pharmaceuticals through centres of excellence, he said, noting that healthcare expenditure on GDP has increased from 1.4 percent in FY19 to 2.1 percent in FY2023.
The Covid pandemic has highlighted the need for research, development, storage, and distribution networks in the healthcare and medical sector, according to experts.
” Since Covid-19, India has demonstrated its scientific capacity and has already established itself as the global pharmacy. With the increase in pharma research and innovation in this year’s budget, India is poised to make a bold move in the promotion of drug discovery,” said Practo co-founder Siddhartha Nihalani.
