Union commerce and industry minister Anand Sharma has said that the government is considering a venture capital fund of Rs.2,000 crore to promote research and development (R&D) in the pharmaceutical sector.

"We are considering a proposal of venture capital fund of Rs.2,000 crore for drug industry. We are talking with Exim Bank for this," Sharma told reporters in New Delhi after the first review meeting of the Consultative Group on Exports of Pharmaceutical Products on Indian pharma exports and global market development.

Apart from reviewing the status of Indian pharma exports and the developments in the global market of this industry, the meeting also featured discussions on supporting innovation and Research & Development (R&D) in the pharma sector; steps taken to emphasize commitment to quality, safety and efficacy of Indian medicines; ways to promote Brand India Pharma in important markets; and the manner in which India can attain a leadership position in the world in pharma exports.

The meeting was attended by the members of the Consultative Group which include both industry and government representatives. From government side, Secretaries of the Department of Commerce, Department of Industrial Policy & Promotion, Ministry of Health & Family Welfare, Department of Pharmaceuticals; Secretary (Economic Relations), Ministry of External Affairs; Drug Controller General of India; Executive Director of Pharmexcil; and, Joint Secretary (Pharma), Department of Commerce are the members of the committee. A large number of industry representatives aslo attended the meeting.

India is the third largest producer of pharma products by volume and its pharma industry is growing at 15-20 per cent annually.  The domestic pharmaceutical industry pegged at US$ 20 billion, is expected to touch US$ 75 billion by the end of this decade.

India is also among the world’s leading exporters of pharmaceuticals and its pharma exports was US$ 13 billion last year growing annually at a rate of nearly 25 per cent. India produces a fifth of the generic medicines of the world.