Sources say the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilisers has requested for Rs 500 crore each for upgradation of technology and National Institute of Pharmaceutical Education and Research (NIPER).
The pharma department has also sought Rs 500 crore for encouraging the small and medium enterprises.
The department is already drawing up a separate plan for bulk drugs.
DoP has submitted its roadmap to the Prime Minister’s Office in which it emphasised clearly on the need to complete the delayed projects including the New Bulk Drug policy and the Jan Aushadhi scheme.
DoP has also highlighted its aim to double the pharma exports to $30 billion in coming years.
The government has also emphasised on improving the research and development in its vision plan stating that there is a need for convergence and synergising various ministries for development of drug discovery in India.
The Indian pharmaceuticals market is the 3rd largest in the world in terms of volume and 13th largest in terms of value. Branded generics dominate the pharmaceuticals market, constituting nearly 70 to 80 per cent of the market. India is the largest provider of generic drugs globally with the Indian generics accounting for 20 per cent of global exports in terms of volume.
According to India Ratings, the Indian pharmaceutical industry is estimated to grow at 20 per cent compound annual growth rate (CAGR) over the next five years and outperform the global pharma industry, which is set to grow at an annual rate of 5 per cent between the same period. Over 500 Indian pharmaceutical manufacturing facilities registered with the US Food and Drug Administration (FDA), highest for any country outside the US.
Presently the market size of the pharmaceutical industry in India stands at $20 billion. IBEF estimates the Indian pharmaceutical market size to grow five times to $100 billion by 2025, driven by increasing consumer spending, rapid urbanisation, and raising healthcare insurance among others.