The Indian Pharmaceutical Alliance (IPA), the pharmaceutical industry association comprising eleven research based national companies, has called for expediting the economic liberalization process in the country, which would be beneficial for the knowledge-based industries like pharma, biotechnology and information technology to grow with the current global scenario.

Speaking at an editor's lunch meet in Mumbai, the IPA chairman Dr Anji Reddy said that the major constraints faced by the knowledge based industries especially pharma sector in the country at present are the slow liberalization process, ambiguity in policy and laws which inhibits R&D effort, lack of internationally benchmarked incentives and resources, weak regulatory standards and enforcement, non GMP producers, spurious and counterfeit medicines, low emphasis on innovative research, shortage of distinctive scientists in emerging areas, low emphasis on networking (government - industry - academia) and lack of IPR awareness and protection.

At the same time, the pharmaceutical industry here has the potential to gain important attention of the government. The industry has global competitiveness and cost leadership, capability to make abundant availability of affordable drugs in the domestic market etc. The industry is already a leading supplier of generics worldwide and also a niche player in global pharmaceutical R&D besides an important center for clinical research as well.

However, developing synergies between pharma, biotech and information technology is the priority focus of the sector to enhance the existing capabilities, he added.

Giving an elaborate insight on the Indian pharma scene, Ranbaxy chief S S Brar said that the pharmaceutical market now is estimated at Rs 18,500 core along with exports of over Rs. 11,000 crore. The sector is a net forex earner for over a decade and the capital investments of over Rs. 10,990 crore in the last five years (CAGR ~ 16%). The R&D investments of the industry are around Rs 1,355 crore over the period (CAGR ~ 20%) and it provides direct and indirect employment to over 29 lakh people. Ultimately it could subsidize the healthcare cost through low costs and prices, Brar said.

Emphasized on the current industry image the IPA projected the sector as it is ranked globally in volume terms 4 th and in value 13th The industry also has pioneered in promoting the "Made in India" tag. Listed amongst top 3 worldwide API production centers, the country's pharma products sold to over 100 countries at present. He added that the consumer is also benefited through world class quality products, most competitive prices in the world (8-10% of international prices) and increased access to modern and latest medicine.

Research orientation of the industry is towards recognized international base for process chemistry, applied research focus and also the largest spender on R&D across domestic industries, the IPA forum stated. So it welcomes introduction of TRIPs complaint IPR regime, the positive impacts on new product pipeline and lower tariffs, and greater international competition, said Dilip G Shah, secretary general, IPA.

IPA members currently includes Alembic, Dr. Reddy's, Lupin, Nicholas, Ranbaxy, Sun, Torrent, Unichem, USV, Wockhardt and Zydus Cadila. Its combined turnover is over Rs 7,100 crore (31% of industry production), domestic sales of Rs. 4121 crore ~ 28.5% market share, exports of over Rs. 2,500 crore ~ 29% of total exports and over 26,000 employees worldwide. Its research and development investments are over Rs. 300 crore ~ 80% of industry R&D spend, over 1520 scientists and technical manpower, over 2000 regulatory filings worldwide, 277 patent fillings and 60 granted patents. Manufacturing investments are Rs. 1,540 crore in 50 facilities and contribution to the exchequer is Rs. 503 crore.