Promotion of Research and Development and Innovation in the pharma-medtech sector

The Union government is taking significant steps to boost research and development (R&D) in the pharma-medtech sector through its scheme called “Promotion of Research and Development and Innovation in the pharma-medtech sector.”

Approval Process and Budget Allocation

The proposal for the scheme has been sent to the Minister of Chemical and Fertilizer, Mansukh Mandaviya, following a thorough evaluation by the Empowered Technical Group (ETG) meeting. Once approved by the minister, it will be forwarded to the Cabinet Secretariat for further consideration. The Union government has set aside a substantial budget of ₹5,000 crore for a period of 5 years, spanning from 2023-24 to 2027-28.

Addressing the R&D Gap

India has gained recognition for its supply of affordable generic drugs worldwide. However, the expenditure on research and development in the pharma sector remains relatively low. Currently, the R&D sector only accounts for 7% of the overall expenditure in the Indian pharma industry, while developed countries allocate over 35% to R&D activities. Recognizing this gap, the government aims to encourage pharma giants to prioritize investment in R&D, facilitating breakthroughs in both communicable and non-communicable diseases.

Establishing R&D Facilities

As part of the scheme, the government plans to establish dedicated R&D facilities in select Indian Council of Medical Research labs. These facilities will be made available for research by public and private medical college faculty, as well as private sector research teams. The objective is to foster collaboration and innovation in the medical research field, ultimately contributing to the growth of the pharma-medtech sector.

Importance of R&D in the Pharma Industry

With around two-thirds of the industry falling under the innovation category, the R&D scheme will strengthen the value chain and enhance the overall competitiveness of the pharma sector.

Centers of Excellence for Product Research and Innovation

The government’s focus on R&D also extends to the establishment of centers of excellence. These centers will facilitate product research and innovation, aiming to bring about new advancements and discoveries. By investing in research, the government intends to address the challenges faced by the healthcare industry and drive advancements in medical technology and treatments.

Month: Current Affairs - July, 2023

Category: Government Schemes Current Affairs