FDI in pharma
- February 1, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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FDI in pharma
Topic: Economy
Context:
FDI in pharma jumped53% in April-Sept. periodFY21 witnessed a 200% spurt: Survey.
- Foreign direct investment (FDI) in the pharma sector in the first half (April-September) of this fiscal increased 53% to ₹4,413 crore from the year earlier.
- The inflows continued to be buoyant, the Department of Economic Affairs said in the annual Economic Survey (2021-22) citing how FDI in pharmaceutical sector had witnessed a sudden spurt in 2020-21, showing a200% increase over the previous fiscal.
- The extraordinary growth of foreign investments in pharma sector is mainly on account of investments to meet COVID-19 related demands for the rapeutics and vaccines.
Reasons for surplus:
- In the section on pharmaceuticals, the government said the country was the largest supplier of generic medicines with a 20% share in the global supply.
- Price competitiveness and good quality were two factors behind Indian medicines producers becoming dominant players in the global market.
- The Indian pharmaceutical industry ranks third in the world in pharmaceutical production by volume.
- During 2020-21, pharma exports totalled $24.4 billion, while pharma import stood at $7 billion, there by generating a $17.5 billion trade surplus.
Scenario of Indian pharma industry:
- India enjoys an important position in the global pharmaceuticals sector, as India is the largest provider of generic drugs globally.
- The Indian pharmaceutical industry meets over 50% of global demand for various vaccines, 40% of generic demand in the U.S. and 25% of all medicine in the U.K.
- Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
- In 2020, India is expected to be amongst the top three pharmaceutical markets in terms of incremental growth.
- The Indian pharmaceuticals market is the world’s third-largest in terms of volume and thirteenth-largest in terms of value. It has established itself as a global manufacturing and research hub.
- India has one of the lowest manufacturing costs in the world – lower than that of the U.S. and almost half of the cost in Europe.