SRINAGAR: India’s pharmaceutical market for the financial year 2023-24 is valued at USD 50 billion, with domestic consumption accounting for USD 23.5 billion and exports valued at USD 26.5 billion. The Government provided a comprehensive update on the state of India’s pharmaceutical industry in the Rajya Sabha, highlighting its significant contributions to the economy, employment, and global exports. Minister of State for Chemicals and Fertilizers, Anupriya Patel, addressed various aspects of the sector, including production value, policy measures for research and innovation, quality standards for exports, and intellectual property regime improvements.
India stands as the world’s third-largest producer of pharmaceutical products by volume and 14th by value. According to the National Accounts Statistics 2024, the total output of pharmaceuticals, medicinal, and botanical products for 2022-23 stood at Rs 4,56,246 crore at constant prices, contributing Rs 1,75,583 crore in value added to the economy. The sector also provided employment to over 9.25 lakh people during the same period.
To promote research and innovation, the Minister highlighted the role of institutions like the National Institutes of Pharmaceutical Education and Research (NIPERs), which are conducting advanced research in the field. The government has framed the “National Policy on Research and Development and Innovation in Pharma-MedTech Sector in India” to encourage drug discovery and the development of innovative medical devices. The policy focuses on regulatory reforms, fiscal incentives, and creating an enabling ecosystem for cross-sectoral research.
Additionally, the government has introduced the Scheme for Promotion of Research and Innovation in Pharma Sector (PRIP) with a financial outlay of Rs 5,000 crore for 2023-24 to 2027-28. Under PRIP, the government plans to strengthen research infrastructure through Centres of Excellence (CoEs) at NIPERs and provide financial assistance to research projects in priority areas. Simplified regulations under the New Drugs and Clinical Trials Rules, 2019, further aim to encourage innovation by streamlining the approval process for clinical trials and new drugs.
On quality assurance for exports, Smt. Patel stated that drugs manufactured for export must comply with licensing requirements under the Drugs and Cosmetics Act and meet the standards of importing countries.
While there is no specific initiative for strengthening the intellectual property regime for the pharmaceutical industry alone, the Minister outlined ongoing steps to improve the overall IP framework. These include amendments to patent rules to streamline processes, expedited examination of patents for startups and MSMEs, and fee reductions. The Start-Ups Intellectual Property Protection (SIPP) scheme has also been extended until March 2026 to support innovators in securing patents, trademarks, and designs.
