Union government thinks Karnataka has the potential to increase its growth in the pharmaceutical sector by capitalizing on the manufacturing opportunities ensuing out of the $72 billion worth of drugs going off patent in the next three years.
At the Invest in Karnataka 2016 meet, Dr VK Subburaj, secretary, department of pharmaceuticals, government of Karnataka said the state needed to create a Pharmaceutical Development Council which would provide the much needed guidance to pharma clusters fill up the infrastructure gaps. The Council could enable and monitor environment clearances besides ensure uninterrupted power and water supply too.
The need of the hour is setting up of massive production plants on similar lines that of China which has dominated the active pharmaceutical ingredients (APIs) and intermediates space. While the state has already allocated 100 to 500 acres for the expansion of the sector, its government will need to increase the land allocation. The government of India will provide the policies to enable the robust growth of the sector, he added.
Karnataka pharma industry share to the total national drug production constitutes a mere 7 per cent when compared to the those of Maharashtra and Gujarat which accounts for a 50 per cent share. Even states of Andhra Pradesh and Telangana account for 30 per cent of the share, said Dr Subburaj.
The existing capability in contract manufacture, conducive research environment and access to high quality human capital are factors that can drive growth. The state’s pharma industries should capitalize on these advantages and move ahead on the national ladder, he said.
“With developed world slashing healthcare budget allocation and looking for high quality affordable drugs, it is here India has chipped in its expertise to export 500 versions of generics in a cost-effective manner to 220 countries. The country is recognized as the pharmacy of the world and is also referred to be to a silent champion of global healthcare supplying not just antiretroviral HIV/AIDS drugs but a whole range of vaccines to prevent diseases, said Dr Subburaj.
India pharma is a successful industry as it provides 2.5 million jobs. This sector is registering a growth of 13-14 per cent and in the case of Karnataka it is already clocking 24 per cent growth which indicates a promising future. Now if the growth of the Indian pharma is sustainable, then it is expected to generate $55 billion by 2020 and $120 billion revenues by 2030 from the current $30 billion. Karnataka will be able to substantially chip in its share because its pharmaceutical entrepreneurs have already proved their capability, said Dr Subburaj.