Pharma dept moves EFC note on R&D
1 min read . Updated: 14 Feb 2023, 11:21 PM IST
PremiumIndia’s expenditure on research and development is a mere 0.7% of its GDP, as compared to 2.5-3% spent by other countries.
NEW DELHI : The department of pharmaceuticals has kicked off the process of research and development investment that was announced in the Union budget by moving an expenditure finance committee (EFC) note.
The budget, presented on 1 February, had announced a greater push for research and innovation to boost India’s medical technology industry.
“In the first stage, there is a requirement of Department of Expenditure’s (DoE) in-principle approval, post which it is cleared by the EFC for Cabinet approval," the official said. The government has given the deadline of March end to complete the departmental work, he added.
Queries sent to a department of pharmaceuticals spokesperson remained unanswered.
While India is known for its supplies of accessible and affordable generic drugs to the world, the government is focusing attention on R&D in the sector, which can help in both communicable and non-communicable diseases.
India’s expenditure on research and development is a mere 0.7% of its GDP, as compared to 2.5-3% spent by other countries. However, investments by companies is approximately 7%. Global companies spend 15-20%.
According to pharma industry experts, research is a costly and high-risk activity. It takes 8-10 years to develop a product and even then, the outcome is not certain.
The government has recognized this and will now boost product research and innovation through centres of excellence.
Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance said that Indian pharmaceutical industry is a knowledge-driven sector, with R&D being core to the growth.