The government is working on a national mission for the pharmaceutical industry.
The department of chemicals and petrochemicals has prepared a broad framework for the mission, which will be an industry-oriented programme to boost pharmaceutical exports and encourage research and development.
Officials told Business Standard, that the objective of the mission would be to turn India into a global research and development hub and encourage research in neglected areas like malaria, dengue and tuberculosis.
As of now, funds available for supporting R&D ventures are minuscule. The department of science and technology has a pharmaceutical research and development fund amounting to Rs 150 crore (Rs 1.5 billion).
The department of chemicals has written to the finance ministry, asking for more funds to boost R&D efforts.
"A mission approach is required if we are looking at an export target of $ 10 billion in the coming few years,'' an official in the department of chemicals and petrochemicals said.
The global pharmaceutical market is worth $ 450 billion while the Indian pharmaceutical market is worth $ 6.5 billion.
"At present, India's exports account for roughly $ 2.5 billion. The pharmaceuticals sector has already been identified as a thrust area by the commerce and industry ministry for the forthcoming annual foreign trade policy, " he added.
The annual foreign trade policy will contain new schemes for the pharmaceutical and auto component sectors," a ministry official said.
Some of the measures being considered include setting up of a pharmaceutical development fund, which is being planned by the department of chemicals and petrochemicals.
The fund will be operated on the lines of the textile upgradation fund scheme (Tufs), to modernise the small-scale sector and give exports a boost. As in the case of Tufs, the government may provide interest subsidy or interest-free loans under the PDF.
According to officials, the proposal was in a nascent stage and it is not clear where the money will be sourced from.
However, settlement money from disputes pertaining to overcharging by pharmaceutical companies could contribute to the fund, officials said.
