India: Pharmacy of World | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

India has established itself as a major player in the global pharmaceutical industry, supplying over 50 percent of the world's demand for generic drugs and accounting for a significant share of the United Nations Economic and Social Council (UNESC).

India’s potential as a global pharmacy

The Indian pharmaceutical industry, which is valued at $41 billion, is predicted to reach $65 billion by 2024 and $120-130 billion by 2030, according to the latest Economic Survey. This growth is being driven by rising exports, as India's pharmaceutical exports of $11.1 billion during April-October 2020 increased by 18 percent compared to the previous year.

• Positive growth and exports: Drug formulations and biologicals have been registering consistent positive growth and have seen the highest increase in absolute terms in recent months, which has led to a rise in their share of exports to 7.1 percent in April-November 2020 from 5 percent in April-November 2019, making them the second-largest exported commodity among the top 10 export commodities.
• Advantages and capacity: India has a significant advantage in the global pharmaceutical industry due to its large raw material base and skilled workforce, which have made it an international manufacturing hub for generic medicines. Additionally, India has the largest number of USFDA compliant pharma plants (over 262 including APIs) outside of the US. The COVID-19 pandemic has demonstrated India's ability to innovate and rapidly distribute time-critical drugs to every part of the world.
• Global leadership: Indian pharmaceutical firms currently supply over 80 percent of the antiretroviral drugs used globally to combat AIDS, making India a global leader in the fight against this disease.

Issues facing the Pharma industry

• The Pharma industry in India is over-reliant on China for 80% of its Active Pharmaceutical Ingredients(API), which is a concerning issue due to potential trade-wars and unstable bilateral relations. 
• Compliance issues and good manufacturing practices have also been a challenge for Indian pharma industries, as countries like China and USA impose barriers against generic drugs.
• The Indian government's Drug Price Control Order has led to lower drug prices, which is beneficial for the public but a concern for pharmaceutical companies.
• Stronger Intellectual Property (IP) regulations are necessary according to foreign companies as they feel they are at a disadvantage due to lax regulations. Multiple approvals for generic drugs to market a single product can create competition and lower prices, which is a significant challenge for the pharma sector in India.
• The lack of proper assessment of the industry's efficiency and productivity has resulted in many plants not surviving. The emergence of unregulated online pharmacies or e-pharmacies in India is also a major concern.
• The quality of medical representatives (MRs) in the Indian pharmaceutical industry has declined due to the lack of proper training and support. In contrast, countries like Russia and the European Union have stricter requirements to become an MR, which is not the case in India where even non-graduates are performing the role without proper guidance.
• The government of India is taking initiatives to create an ecosystem that supports manufacturing in the pharma industry. Overall, the affordability of healthcare is a major concern in India, and clarity on fair pricing principles for medical products would be welcomed by the public. It is crucial to give accused companies a fair hearing.

Conclusion

Healthcare affordability is a significant concern in India, and people would appreciate clear guidelines on fair pricing for medical products. It is crucial for the accused companies to be given a fair trial. The Government of India has initiated several measures to establish an environment that promotes the growth of pharmaceutical manufacturing industries.