The Union government’s National Manufacturing Policy (NMP) is viewed to promote the productivity of the pharmaceutical sector. The policy was devised with the objective to enhance the share of manufacturing in gross domestic product (GDP) to 25 per cent from the current 15 per cent within a decade and create a 100 million jobs. The government brought out the policy because it has recognized that the manufacturing sector has a multiplier effect on the creation of jobs even in the allied sectors. It has also announced the identification of National Investment Manufacturing Zones (NIMZs) which will support the expansion efforts of the small and medium enterprises.

In this policy, pharmaceutical industry is classified under special focus sector. Drug pharmaceutical manufacturers, drug production industry experts opine that NMP would help to leverage the benefits from improved infrastructure, simplification of business regulations and skill upgrade measures.

Indian pharma sector is currently valued at US$ 21 billion (Rs.84,000 crore). According to Jai Hiremath, chairman - CII Pharma Summit 2011 and vice chairman and managing director - Hikal Ltd., the pharma industry has been showing robust growth. The domestic pharma industry is expected to grow at a CAGR of 15- 20 per cent with a turnover of US$ 50 billion by 2020.

With Indian pharmaceutical industry being one of the key contributors to the GDP growth, the NMP is giving considerable focus to certain industrial verticals which are employment intensive, creating demand for capital goods, initiatives to build strong capacities with research and development facilities and also encourage the growth of these capacities in the private sector. “In all these areas the pharma manufacturing is a component of the Indian manufacturing space,” stated members of the Karnataka drugs and Pharmaceuticals Manufacturers Association.

“The NMP is a good initiative. The move for job creation will boost industry growth prospects together with liberalization and thrust on labour management will make units to become more productive. Single window schemes would help prevent the industry from running from pillar to post for clearances. Overall the intention is appreciated but provided it is implemented to deliver the desired results, stated Archana Mitra, AVP, international Marketing, Bal Pharma Limited.

The policy further highlights the support extended to industries of strategic significance and which have a competitive edge. Today, Indian pharma is much-sought after for its expertise, manufacturing plants which have been audited by the international regulatory authorities proving the quality and time line delivery capability. In terms of cost of manufacture too, the sector offers the economies of scale. The NMP is expected to remove the growth constraints like inadequate physical infrastructure and complex regulatory environment and lack of skilled manpower.

In addition, the policy is based on the principle of industrial growth through partnerships. In the last few years, pharma sector has been enhancing its value through alliances and partnerships, stated Sujay Shetty, executive director, Pharmaceuticals and Lifesciences Leader PricewaterCoopers.

The National Manufacturing Competitiveness Programme, being implemented by Ministry of Micro Small and Medium Enterprises (MSME) will now create a separate fund with the Small Industries Development Bank of India (SIDBI). There are 19,000 pharma units of 210 are in the large sector and the remaining in the SME space.

“We are looking at the biotech sector to be Rs.40,000 crore ($10 billion) from the current Rs.20,000 crore ($5 billion). Biotech industry together with biopharma manufacture, have been the growth driver for the economy,” said Kiran Mazumdar-Shaw, chairperson, Vision Group on Biotechnology, government of Karnataka and CMD Biocon Limited.