Pharmaceutical sector in India has emerged as a major industry segment over the last 30 years with its total production exceeding Rs 70,000 crore today. Almost 50 per cent of this production is being exported to over 150 countries including most of the developed countries by big and medium scale companies. As per the latest figures available from the government sources, pharmaceutical industry has over 6000 manufacturing units spread across the country. Trading establishments, both retail and wholesale, dealing with pharmaceutical products is estimated to be 6 lakh. In addition to these, the country also has 3000 odd units manufacturing ayurvedic, unani and siddha drugs. More than 30 per cent of production from this sector is also being exported. This is no small achievement for a sector which was totally dominated by the multinational drug companies till the end of seventies. Although the private sector initiative is primarily responsible for this kind of growth in such a short time, the Central government did play a key role in developing this industry to this stature. The Centre was able to give such a direction and support to the pharmaceutical industry without having an independent ministry or a separate department within the ministry. But, the government did bring in an important legislation, the Indian Patent Act of 1970, and the first Drug Policy in 1978 to give a big boost to the domestic pharmaceutical industry.
Having achieved the kind of growth and international status, Indian pharmaceutical industry needs to be handled with exclusive care and support by the government to make it reach the next stage of growth. The government's decision to have separate department for handling the affairs of the pharmaceutical sector of the country is thus just appropriate. Early this month, the Department of Pharmaceuticals came into existence with Ashok Kumar, chairman of NPPA, appointed as its secretary. Until now, the secretary in charge of department of chemicals and petrochemicals, has been looking after the pharmaceuticals sector. With the creation of a separate department for pharmaceuticals, the sector is all set to get a focused attention. And it is expected to evolve into a fully independent administrative centre with enough financial freedom. The government's ultimate aim in establishing the department is to provide a single window for all needs and problems related to the industry. Now, Union health ministry has a key role in matters like approval of new drugs and administration of various drug acts. The critical department like CDSCO and office of the DCGI are under the ministry of health. It is important that these functions should also be brought under the purview of the new department. This may not be possible immediately as the health ministry has to agree to forgo these power centres. To make the new department to handle most affairs of the pharmaceutical sector, the government has to bring about these vital changes sooner or later.