Read the Conversation
EF: What are IDMA’s current priorities for achieving growth and benefiting all its members?
VS: India’s current pharma industry size is around 55 billion dollars annually, split almost equally between domestic needs and international business. Our exports are about 27.5 billion dollars, with a similar amount for domestic requirements. Notably, 32% of our global market is the US, our largest outside India. Europe follows with around 17%. In pharma, you often hear about regulated and semi-regulated markets, which have different entry requirements and conditions. About 50% of our total exports go to the regulated world, our largest customer base. Compared to India's 8% - 10% GDP growth over the past decade or two, our industry has grown almost one and a half times faster, making it one of the most progressive sectors. We aim to reach around 120 to 130 billion dollars by 2030 and hopefully, 450 billion by 2047, aligning with the Indian government's Vision 2047, which marks 100 years of independence.
These long-term goals are aspirational but possible if we address certain issues. We need to recalibrate our approach, including innovative solutions and value-added products, to realize these numbers. This includes strengthening the manufacturing industry, improving GMP standards, and addressing gaps, like our current limitations in biologics. By addressing these factors, we hope to gather momentum and achieve our targets.
EF: How does your association support the shift from generics to innovative products? Are there incentives or programs for researchers and companies?
VS: As an association, our main role is on the policy front. We strive to be involved in policymaking and ensure the right long-term policies are in place. Essentially, we act as facilitators. In doing so, we remain sensitive to the needs of other stakeholders while focusing on opportunities for the industry. For example, we identify areas where investments are needed, such as biologics and APIs (Active Pharmaceutical Ingredients). Complex generics also present substantial opportunities due to many molecules going off-patent in the coming years. Post-COVID, there has been a surge in demand for wellness products and preventive medicines. These areas and our traditional strength in chemistry-based APIs and formulations need continued focus and development.
We also engage with the government to support innovation, new drug delivery systems, and other value-added products. For instance, IDMA was involved in discussions on the PRIP scheme, which promotes research in the pharmaceutical and medTech sectors. This scheme aims to attract initial investments and stimulate interest in innovation across large, medium, and small players. We understand funding is just one part of the equation, so we work with all stakeholders to drive progress in these areas. We collaborate closely with academic institutions through our academia-industry cell. Our goal is to encourage good research right at the college level. We also engage with venture capitalists because these investments are high-risk, and their involvement is crucial.
Moreover, we work with regulators to ensure they are open to new ideas and innovations, and we connect with researchers to create a robust ecosystem. Building this ecosystem is essential for successful innovations and value-added products. For example, in the API sector, IDMA has been involved in discussions leading to the PLI (Production Linked Incentive) schemes. The government identified 41 KSMs (Key Starting Materials) and APIs where India depends almost entirely on imports.
In the area of biologics, we work with the Department of Biotechnology (DBT) on projects like genome sequencing banks. This involves integrating science and technology with financial support and encouraging pharmaceutical companies to bring promising ideas to market.
EF: As a representative of the pharma sector, what message would you give to the future generation of Indians seeking careers in the health industry?
VS: We have a large talent pool, but one of the main challenges identified by IDMA is making this talent more employable. There is a gap between the available talent and the industry's needs, which are becoming more complex as we grow. To address this, we are working with several colleges, universities and boards to bridge these gaps.
In the past, colleges were the primary source of talent, but now, with the rise of incubation centers nationwide, other institutes are also encouraging entrepreneurs and researchers. Many students with strong research inclinations come up with innovative ideas, and we collaborate with them to develop these ideas further. Additionally, entrepreneurs from these centers are transforming their creative ideas into successful ventures, and we support them through this process. For example, we created a dashboard at the National Institute of Pharmaceutical Education and Research (NIPER) where companies can log in and see the research conducted at various institutes. Many other universities and colleges have implemented similar initiatives to engage with the industry and address its future needs.
Our engagement with academic institutes is highly active. We aim for a target of $450 billion, about nine times our current size. This growth will come from value and volume, with around fourfold growth in volume and the rest from value-added products. To achieve our goals, we will continue to work closely with academic institutions, as we need both talent and innovation to reach our targets.
EF: Today, India is known as the Pharmacy of the world. What would you like India's nickname to be ten years from now?
VS: I think we will transition from being the pharmacy of the world to becoming the healthcare center of the world. Currently, we are the third largest manufacturer of formulations, mainly focused on synthetic molecules, APIs, and formulations. We supply almost all dosage forms, but we aim to evolve into global healthcare solution providers. Imagine a scenario where people come to India for healthcare, with hospitals ready to serve them.
In ten years, we foresee a blend of various innovations. Drug-device combinations will become more prevalent, simplifying patient care through collaboration between the devices and drug industries. Additionally, IT technology will integrate with drugs and devices, creating mobile or web-enabled solutions. This will give patients more control over their health, and prescribers will have better visibility of patient responses to therapies. We see a future where multiple stakeholders—paramedics, doctors, patients, pharmaceutical companies, device manufacturers, and IT players—interact continuously. Instead of the current isolated system where drugs are manufactured, prescribed by doctors, and then left to their discretion, we will have a more inclusive system. This shift aims to create a patient-centric society. By placing the patient at the center, we can bring more comfort, ease, and transparency to healthcare. As a nation, we aspire to play a much larger role in this integrated and patient-focused healthcare system than we do today.
EF: Is there any last message that you want to give?
VS: We need to focus on patient outcomes moving forward. Patients should not be taking medicine or solutions just because a doctor has prescribed them. In the future, maybe in 10 or 20 years, we might see a shift where reimbursements are based on the benefits provided to the patient, not just the cost of the medication. What is important will be the actual benefit you bring to the patient. For example, early diagnosis is crucial because the sooner a condition is identified, the sooner healthcare professionals and pharmaceutical companies can get involved. We all need to work together with the patient's best interests in mind.
