Union Budget 2025 | Pharma landscape points toward need to focus on innovation: Economic Survey

New Delhi: There is a need to focus on innovation, new drug development and biopharmaceuticals as spending on research and development still lags behind global leaders, said Economic Survey 2024-25 tabled in Parliament on Friday.

The total annual turnover of pharmaceuticals in FY24 stood at Rs 4.17 lakh crore, growing at an average rate of 10.1 per cent in the last five years.

Exports accounted for 50 per cent of the total turnover, with its value at Rs 2.19 lakh crore in FY24. The total import of pharmaceuticals was worth Rs 58,440.4 crore.

"The overall pharma landscape of India points towards a need to focus on innovation, new drug development and biopharmaceuticals, as R&D spending still lags behind global leaders," the survey said.

The government has taken various measures to support the sector like PLI scheme and Strengthening of Pharmaceuticals Industry (SPI) among others, it noted.

PLI scheme aims to attain self-reliance and reduce import dependence in critical Key Starting Materials (KSMs)/Drug Intermediates and Active Pharmaceutical Ingredients (APIs), the survey said.

Elaborating on other steps taken by the government, the survey stated that in October 2023, the Central Drugs Standard Control Organisation approved India’s first indigenously developed CAR-T cell therapy.

To expedite the availability of newer drugs, such as gene therapy products, orphan drugs, drugs representing significant therapeutic advantage, in the country, the Central Drugs Standard Control Organisation has notified the US, UK, Japan, Australia, Canada and the European Union, enabling waiver of local clinical trial for new drugs that are already approved and marketed in the notified countries.

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.