India is a major exporter of pharmaceuticals, serving more than 200 countries in the world. With a robust generic drug manufacturing sector and cutting-edge research capabilities, the nation has emerged as a pharmaceutical powerhouse. India caters to 50% of Africa’s requirement for generics, 40% of generic demand in the US, and 25% of all medicine in the UK.
To boost technological advancements and fuel the growth in this sector, the government has launched various subsidy programs.
Let’s explore the network of various financial incentives offered by the government for the sustainable development of the pharmaceutical sector.
Prescription for Success
Being one of the biggest suppliers of low-cost vaccines in the world, India accounts for 60 % of global vaccine production, contributing up to 70 % of the WHO demand for Diphtheria, Tetanus, and Pertussis (DPT) and Bacillus Calmette–Guerin (BCG) vaccines, and 90% of the WHO demand for the measles vaccine.
To drive the growth in the pharmaceutical sector, an outlay of INR 6,940 Cr is being provided under the Production Linked Incentive scheme for Bulk Drugs and an outlay of 15,000 Cr for pharmaceutical manufacturing. Financial incentives will be provided for Fermentation products and Chemically Synthesized products to eligible manufacturers on their incremental sales over the base year 2019-20 for a period of 6 years.
Recently Dr. Mansukh Mandaviya, Minister of Health and Family Welfare, launched the National Policy on Research and Development and Innovation in the PharmaMedTech Sector in India and the Scheme for Promotion of Research and Innovation in the Pharma-MedTech Sector (PRIP). “The scheme will focus on transforming India into a high-volume, high-value player in the global market of pharmaceuticals, meeting the quality, accessibility, and affordability goals.”, he stated.
State governments are also leading the pharma industry towards unprecedented heights by offering various incentives.
Reimbursement of 100% of actual filing costs on domestic patents and 50% of actual filing costs on international patents is being provided by Uttar Pradesh Government. It is also reimbursing 75% of total expenditure on clinical trials.
Madhya Pradesh is a major Pharmaceutical hub in the country, employing more than 1 lakh people. To promote the growth of this sector, the MP government is providing an Infrastructure development subsidy at 50% with a maximum limit of INR 1.00 Cr each for Water/ Electricity/ Roads for Private/Undeveloped Government Land
Pharma prosperity through Government Subsidies
Strategic planning is essential for the pharma businesses to avail themselves of the maximum benefit of relevant subsidies offered by the government. By utilizing the benefits provided by the government, companies not only improve their financial health but also contribute to improving the affordability and accessibility of the healthcare sector in India.
It is crucial to understand the application process, eligibility criteria, and compliance requirements associated with each subsidy, thus making it necessary for the companies to take the help of subsidy consultants.
SubsidyPro is the most knowledgeable and trusted partner in navigating the complex world of government subsidies in India. It guides and assists entrepreneurs through the maze of subsidy programs offered by various governments. Subsidy Pro specializes in identifying eligible subsidies, preparing requisite documentation and ensuring compliance. The company helps unlock the potential of subsidies by providing customized solutions as per client’s needs and objectives to make their financial planning more viable.
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