Foreign direct investment (FDI) in India’s pharmaceutical and medical device industries totalled Rs 8,081 crore (US$1.2 billion) for the current financial year from April through September, the central government announced on Thursday. In the fiscal year 2021–22, FDI in the pharmaceutical sector (including both pharmaceuticals and medical equipment) was Rs 12,097 crore.
In addition, the department has approved 21 FDI bids for brownfield projects totalling Rs. 4,681 crore from January 1 to November 30 of this year.
The Pharmaceuticals and Medical Devices Bureau of India (PMBI) reportedly generated 893.56 crore in revenue in FY21-22, resulting in cost savings for the citizens of almost Rs. 5300 crore, the government said. In the current fiscal year 2022–23, PMBI has generated sales of Rs. 758 crore as of November 30, 2022, resulting in savings to citizens of over Rs. 4500 crore
Government schemes that worked
In 2022, the department of pharmaceuticals implemented a number of programmes and initiatives, including the “Pradhan Mantri Bhartiya Janaushadhi Pariyojana” to provide quality generic medicines at affordable prices to the poor and the “PLI scheme” to strengthen India’s manufacturing capacity in the pharmaceutical sector by increasing investment and production. In addition, the department emphasised domestic production of medical equipment and the pharmaceutical industry.
Up till November, around 8916 Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) had been opened across the nation, with a goal of increasing this number to 10,500 by March 2025.
With the goal of reducing India’s reliance on imports, the government has also launched the Production Linked Incentive (PLI) to encourage the domestic manufacturing of Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs).
Promoting domestic manufacturing of medical devices
The department also placed an emphasis on developing domestic manufacturing of medical equipment and attracting substantial investments in this sector. The duration of the programme is from FY 2020-21 to FY 2027-28, with a total budget of Rs. 3,420 crore. Cancer care/radiotherapy medical devices, radiology and imaging medical devices (both ionising and non-ionizing radiation products), nuclear imaging devices, anaesthetics and cardio-respiratory medical devices, including cardio-respiratory catheters, and renal care medical devices are the four target segments identified under this scheme.
Source: PIB