PR No – 49
6th March, 2024
New Delhi
As we are growing in double digits year-on-year, the sector could become as big as 10 percent and Along with automotive electronics, drugs & pharmaceuticals, and medtech, it could be the third-biggest manufacturing sector for India; Shri Arunish Chawla, Secretary, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Govt. of India.
The industry constitutes 3.5 percent of the total manufacturing output value in the country, in terms of gross value added, it represents 7.5 percent of the manufacturing industry. The value added in pharmaceutical industry is almost twice that of the general value added in other sectors said, Shri Arunish Chawla, Secretary, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Govt. of India, while Speaking at PHDCCI’s 8th PharmaMed HD Pharmaceutical, Medical Devices, Hospitals & Diagnostics event on the theme “Make in India-Made for the World,” organized on 6th March at PHD House, New Delhi.
As we are growing in double digits year on year, faster than other manufacturing sectors, going forward up to 2030 and beyond, this sector could become as big as 10 percent. Along with automotive electronics, drugs & pharmaceuticals, and medtech, it could be the third-biggest manufacturing sector for India, he added.
Speaking further, Mr. Chawla said, we need to focus on three dimensions. First, we need to deepen the strategic depth of our value chain as we still have some vulnerabilities which we learned during COVID, and we launched PLI schemes and numerous initiatives. The Honorable Minister of Health and Pharmaceuticals have also recently inaugurated 50 Greenfield projects across the country manufacturing bulk drugs and medical devices. These Greenfield projects would produce CT scans, MRIs, Cath labs, C-arms, body implants, diagnostic in vitro diagnostics, and all kinds of medical devices. This will catalyze more innovation, more Make in India, and also more for the world.
Second is the upgrading of quality standards. Half of our manufacturing units have achieved WHO’s Good Manufacturing Practices standards. The Honorable Minister yesterday approved a change or reform in the guidelines of the PTUAS scheme. This scheme was essentially for medium to small drug manufacturing units. Recognizing the need, we upgraded the schemes under which everything needed, like certification expenses, etc is provided. There is a simple graded structure where each unit, depending on its size and turnover, can get reimbursement subsidies of around 10-20 percent for upgrading its quality standards and obtaining revised certificates. This was a critical demand of the industry, and we are happy to announce that it has been heard, recognized, approved, and offered. Third is research and innovation. We have launched a PLI scheme aimed at high-value areas like complex generics, biotech products, therapies, and all complex and therapeutic categories. In a span of three to four years, the industry has risen to the occasion, and all targets under this scheme have been exceeded.
Coming briefly to the Meditech and the medical device sector, it is true that traditionally we have been big importers. We cannot and should not stop this import because it is linked to healthcare, but we should also start working on this industry, just like the way we have worked on drugs and pharmaceuticals.
Ms. Cristina Ritter, Head of Anticorruption and Governance UN Global Compact, New York (UNGC), informed, that the U.N. Global Compact is the world’s largest corporate sustainability initiative, aiming to assist companies in integrating universal principles related to human rights, labor, environment, and anti-corruption into their strategies and operations.
She emphasized that achieving this goal requires good corporate governance. Taking it a step further, the U.N. Global Compact has developed an approach called transformational governance, which blends good corporate governance, sustainable governance, and global governance. This approach urges businesses not only to be ethical, transparent, and accountable but also to promote responsible business practices by being sustainable, inclusive, and supportive of public institutions and laws.
In essence, transformational governance expands the concept of corporate governance to address a company’s impact on the environment and societies where it operates, aiming to contribute to peace, justice, and strong institutions, she concluded.
Dr. Sameer Gupta, Co-Chair, Hospital, Diagnostics & Wellness Committee, PHDCCI, emphasised how In today’s rapidly evolving landscape of pharmaceuticals, the essence of “Make in India – Made for the World” resonates profoundly. This ethos embodies India’s commitment to excellence, innovation, and global collaboration in pharmaceutical manufacturing and healthcare delivery.
Through innovation, collaboration, and unparalleled quality, Indian medical technology is poised to make a significant impact on the global stage, transforming healthcare delivery worldwide. As the industry undergoes dynamic changes, it becomes imperative to sustain and elevate quality standards, he added.
Shri Atantra Das Gupta, Co- Chair, Medical Devices Committee, PHDCCI pointed out that our projected medical device revenue stands at $7 million USD. With India’s medical device industry valued at $11 billion and expected to reach $50 billion by 2030, there’s significant growth potential. To establish ourselves as medical device manufacturers, we need to consider the categorization of medical devices. Additionally, while the government is investing in infrastructure, we must assess if it’s adequate and determine the categories where we should focus our growth efforts. Building an ecosystem is essential, recognizing that medical devices encompass both hardware and software, including advanced technologies like AI. Referring to Japan’s industry success, Mr. Gupta suggested that the PHDCCI could lead a movement, starting with MSMEs and adopting a bottom-centric approach. He emphasized the need to build an industrial repository to support this endeavor.
Shri. Atul Sharma, Founder Director, Involution Healthcare Pvt. Ltd., highlighted that the medical device industry gained independent industry status in 2014 and is now a sunrise sector under the Make in India initiative. Collaboration between industry and government will further drive growth. He also commended schemes like PLI and other government-centric initiatives.
Mr. Atul emphasized the importance of manufacturing in India and highlighted technology adoption, such as AI, as a catalyst for growth in sectors like diagnostics. He noted the significant reduction in the balloon-to-door time, thanks to indigenous companies setting up around 2500 Cath labs. Mr. Atul further expressed confidence that together, impactful solutions can be developed to enhance healthcare accessibility and affordability for all.
The Event was sponsored by Innvolution Healthcare Pvt. Ltd., SMT, Metro Group of Hospitals and Walter & Bushnell and was supported by PHDCCI annual sponsors, DLF Ltd; Jindal Steel & Power; KLJ Group; Multani Pharmaceuticals Ltd; Marble City; MMG Group; Radico Khaitan Ltd; Uflex Ltd; Vestige; Eazy ERP Technologies; JK Tyre & Industries Ltd; Sagar Group of Industries; Superior Industries Limited; Samsung India Electronics; Oswal Greentech; Apeejay Stya Group; Blossom Kochhar Beauty Products Pvt Ltd; DCM Shriram; R E Rogers; Trident Group; Ajit Industries Pvt Ltd; Bhagwati Plastic and Pipes Industries; Central Coalfields Ltd; DD Pharmaceutical Ltd.; Hindware Sanitary; Jindal Steel; Modern Automobiles; P S BEDI & Co.
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Warm Regards,
Media Division
PHD Chamber of Commerce and Industry