Indian government will invest nearly Rs 2,500 Crore to boost up research and development activities in the pharmaceutical sector.
Indian government has announced to invest nearly Rs 2,500 Crore ($482 Million) and a similar amount from private players to boost up research and development (R&D) activities and to promote innovation in the pharmaceutical sector, as reported by THE HINDU.
At present, a total of Rs 2,000 Crore ($386 Million) is spent in research and development activities in India, of which Rs 1,500 Crore ($289 Million) comes from the private sector while Rs 500 Crore ($96 Million) is contributed by the government. The proposed investment of Rs 10,000 Crore ($2 Billion), wherein the private pharma sector will have significant contribution under public private partnership (PPP) model, is expected to create favorable environment for drug innovation.
The Indian pharma industry currently lacks world-class infrastructure to conduct research and development activities. Thus, the government’s proposal of massive investment will improve infrastructure, which in turn, will make it easier for the department to get the patent.
According to government officials, the investment will primarily be used to do R&D on neglected diseases, which have seen low investment from developed countries. Moreover, the program aims to make India one of the five leading global pharmaceutical innovation hubs by 2020.
The program includes undertaking pro-active steps like building infrastructure through private public partnership and providing financial incentives to promote innovation in the drug development. Moreover, it involves a provision of building a favorable regulatory system for boosting research activities in the sector.
Furthermore, the government is planning to invest more than $1 Billion in the next five years for encouraging innovation. It is expected that half of this amount will come from the domestic pharmaceutical industry, while the rest will be spent by the Ministry of Chemicals and Fertilizers.
Since private players would hesitate initially to make such massive investments, therefore the government has taken initiative to lead the program by contributing nearly half of the estimated budget for two-three years in the beginning.
According to a Research Analyst at RNCOS, “Global pharma industry has started recognizing India for its generic drugs. The sector is expected to see robust growth once this proposal comes through. The proposed investment should help pharmaceutical companies to focus on particular research areas like process and lifecycle R&D, holistic medicine, New Chemical Entities (NCEs) and bio-similars.”
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