Pharma Sector in India

Why in news?

• Recently, the Central Drugs Standard Control Organisation (CDSCO)has withdrawn powers delegated to State licensing authorities making itself the sole authority for issuing manufacturing licences for drugs meant for export.

About the Indian Pharmaceutical Sector

• India’s pharmaceutical industry is the third-largest in the worldin terms of volume and the 14th largest in terms of value.
• It contributes about 2% to India’s GDPand around 8% to merchandise exports.
• The domestic industry contributes 5% to global export of drugs and medicines.

• It encompasses a vast network of 3,000 drug companies and 10,500 manufacturing units.
• Approximately 500 Active Pharmaceutical Ingredient (API) manufacturers play a significant role and contribute around 8% to the global API industry.
• The current market sizeof the Indian pharmaceutical industry is around $50 billion.
• Due to its role in supplying cost-effective generic medicines globally, India has earned the moniker of ‘pharmacy of the world’.

Growth Prospects

• It has seen a massive expansion over the last few years and is expected to reach about 13% of the size of the global pharma market while enhancing its quality, affordability, and innovation.
• India aims to grow the pharmaceutical industry by about four times to $200 billion by 2030.
• The industry’s focus on generic drug manufacturing has significantly improved access to essential medicines, especially in developing countries.

Key Challenges in the Pharma Sector of India

• Despite its impressive growth, the Indian pharmaceutical sector faces several challenges, including pricing pressures in the US generics market, scarcity of foreign currency in several African countries, and significant depreciation of local currencies. These include:
• Dependence on Imports:APIs and Key Starting Materials (KSMs) import dependence exposes the industry to vulnerabilities related to supply chain disruptions and price fluctuations.
• Slow Pace of Development:Indian pharmaceutical industry has been relatively slow in the development of biologics, biosimilars, and other emerging products.
  • It can potentially hinder the industry’s ability to keep pace with global trends and meet the evolving needs of the healthcare sector.
• Regulatory Inefficiencies:These pose another significant challenge for the Indian pharmaceutical industry that can lead to delays in drug approvals, increased costs, and reduced competitiveness in the global market.
  • Recently,CDSCO (India’s drug regulator) withdrew powers delegated to State licensing authorities to issue ‘No Objection Certificates (NOCs)’ for the manufacture of unapproved, banned, or new drugs for export purposes.
• Access to Funding for innovation in the Pharma-MedTech domainis another area of concern.
  • Limited access to capital can stifle innovation and hinder the development of new drugs and therapies.
• Skilled Human Resource: Indian pharmaceutical industry requires a highly skilled workforce to drive research and development, manage operations, and ensure quality control.

Major Initiatives in the Pharma Sector of India

• Production Linked Incentives (PLI) Scheme:It aims to promote domestic manufacturing by providing incentives on incremental sales.
  • It is expected to benefit manufacturers of bulk drugs and medical devices, thereby reducing India’s dependence on imports.
• Foreign Direct Investment (FDI): Government initiatives such as allowing 100% FDI through automatic routes for greenfield pharmaceutical projects.
• Bulk Drug Parks: Government has proposed the establishment of three bulk drug parks to provide world-class infrastructure for the pharmaceutical industry that are expected to lead to substantial cost savings in drug production.
• Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS): It aims to facilitate the upgrade of technology in the pharmaceutical industry and is expected to enhance the industry’s competitiveness and ensure the production of high-quality drugs.
• National R&D Policy: It is designed to promote research and development in the pharmaceutical sector which aims to foster innovation and the development of new drugs, thereby positioning India as a global leader in the pharmaceutical industry.
• Promotion of Research and Innovation in Pharma-MedTech (PRIP) Scheme: It aims to promote research and innovation in the Pharma-MedTech domain and is expected to drive the development of innovative medical devices and pharmaceutical products.
• Vision Pharma 2047: Government aims to make India a global leader in the manufacturing of affordable, innovative & quality pharmaceuticals & medical devices by the year 2047.
  • It includes introducing natural products, ensuring accessibility & affordability of patient-centric products for better healthcare outcomes, and contributing to the Health System to attain a union of equity, efficacy, and efficiency.

Way Ahead

• According to a study conducted by the Department of Pharmaceuticals,India needs to get ready to take advantage of drug sales worth $251 billion going off-patent this coming decade.
  • The expiry of patentsis very promising for the Indian generic drug market as it is expected to expand and grow further with the inclusion of these new drugs.
• India’s pharmaceutical industry is moving towards transparency and visibility, embracing stringent anti-pollution norms, resulting in improved conditions within pharmaceutical plants.
  • Automation and technological advancementsare contributing to increased efficiency and reduced reliance on manual labour.

Affordable Housing Schemes in India (PMAY)

Why in news?

• According to the Indian Council for Research on International Economic Relations (ICRIER), India’s urban housing shortage rose by 54%from 78 million in 2012 to 29 million in 2018.

Housing scenario in India

• The2011 census found that over 65 million people, about 5% of India’s total population, lived in slums.
• India has around 7 millionhomeless people, as per the 2011 Census. Even for people with houses, the quality of build, congestion, and inadequate infrastructure remain major concerns.
• As Per the government’s definition, affordable housing properties are those with an area not more than 60 sq.m, with the price capped at ₹45 lakh.

History of housing schemes in India

• A right to housinghas been held to be a part of the fundamental right to life under Article 21 of the Constitution by the Supreme Court.
• The first policy intervention from the Government came in 1985,with the Indira Awaas Yojana, which was focused on rural housing. 
• Urban housingcame into focus with programmes such as the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), launched in  
• In 2008,the Parekh Committee report on housing led to urban housing interventions such as the Rajiv Awas Yojana and Rajiv Rinn Yojna. 
• The Housing for All schemes (2015-22)were launched with two wings
  • Pradhan Mantri Awas Yojana- Gramin (PMAY-G) and,
  • Pradhan Mantri Awas Yojana-Urban (PMAY-U).

What is PMAY-U?

• The Ministry of Housing and Urban Affairs (MoHUA)launched the Pradhan Mantri Awas Yojana – Urban (PMAY-U) in 2015, as a flagship Mission of the Government of India.
• Objective: It addresses urban housing shortage among the Economically Weaker Section (EWS)/Low Income Group (LIG) category including the slum dwellers by ensuring a pucca house to eligible urban households.
• Components of the scheme are as;
  • In-situ Slum Redevelopment (ISSR)
  • Credit Linked Subsidy Scheme (CLSS)
  • Affordable Housing in Partnership (AHP)
  • Beneficiary-led Individual House Construction/ Enhancement (BLC-N/ BLC-E)
• Implementation period: The scheme was earlier from 25.06.2015 to 31.03.2022. Now it has been extended up to 31.12.2024, except Credit Linked Subsidy Scheme (CLSS) vertical, to complete all the houses sanctioned under the scheme.

Status of the PMAY

• Around 83% of the houses to be constructed under PMAY-U are not meant for the urban landless poor, but rather for families having access to capital and land.
• The slum rehabilitation scheme within PMAY-U has sanctioned only 2.96 lakh homes.
• Under PMAY-G more than 2.94 crore houses have already been sanctioned to the eligible beneficiaries by the States/UTs and over 2.55 crore houses have already been completed as on 01.02.2024.

What is PMAY-G?

• The Ministry of Rural Development is implementing Pradhan Mantri Awaas Yojana- Gramin (PMAY-G) to provide assistance to eligible rural households with an overall target to construct 95 crore pucca houseswith basic amenities.
• The beneficiaries are provided financial Assistance of Rs.1.20 lakh in plain areas and Rs.1.30 lakh in hilly States.

Schemes launched by the State 

• The Andhra Pradesh government has undertaken schemes such as the Navaratnalu-Pedalandariki Illu.
• Under this, the State had taken up construction of 21.76 lakh houses, with an outlay of ₹56,700 crore.

Challenges in implementation of the schemes

• Acquiring landfor housing projects at affordable rates, especially in urban areas, poses a significant challenge.
• Identifying and verifying eligible beneficiariesis a complex process. Many potential beneficiaries are not aware of the PMAY.
• Delays in implementation of the projects due to lack of funds, bureaucratic red tape etc.
  • The PMAY-U promised houses for 1.18 crore families by December 2024. As of March 2024, it has only achieved around 67% of its target, that is, around 80 lakh.

Way Ahead

• Continuous monitoring and evaluation of the scheme’s progress are essential to identify bottlenecks, measure outcomes, and make necessary course corrections.
• Also Incorporating sustainability measures and environmental considerations into housing projects is important for long-term viability.
• Ensuring equitable distribution and addressing the needs of marginalized communities are critical for the success of PMAY.