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Infomerics Valuation And Rating Pvt. Ltd.
Infomerics Valuation And Rating Pvt. Ltd.
SEBI REGISTERED / RBI ACCREDITED / NSIC EMPANELLED CREDIT RATIN
SEBI REGISTERED / RBI ACCREDITED / NSIC EMPANELLED CREDIT RATING AGENCY
INDUSTRY OUTLOOK
INDUSTRY OUTLOOK
ECONOMIC DIGEST (January 2021)
ECONOMIC DIGEST (January 2021)
DATE
(05 January 2021)
Phone: 011-24654796 104, 106,108 01st Floor, Golf Apartments
Phone: 011-24654796 104, 106,108 01st Floor, Golf Apartments, Sujan Singh Park, Maharishi Ramanna Marg, New Delhi -110003
1. Five charts show what the global economy looks like heading
1. Five charts show what the global economy looks like heading into 2021: CNBC The Covid-19 pandemic has sent the global economy into one of its worst recessions ever, and it isn’t yet clear when a full recovery will occur. Recent progress on coronavirus vaccines has brightened the economic outlook, but some economists said a potentially slow rollout of vaccines across developing economies could hamper the return of activity to pre-pandemic levels. Even among advanced economies, renewed lockdowns in Europe to stave off resurgent infections could push back economic recovery.“The vaccine discovery is a shot in the arm, but not until 2022,” Citi economists said. Still, there will be “clear improvement” in the global economy in 2021, partly because “it’s not hard to be better than 2020,” they said.
Infomerics Valuation And Rating Pvt. Ltd.
Infomerics Valuation And Rating Pvt. Ltd.
SEBI REGISTERED / RBI ACCREDITED / NSIC EMPANELLED CREDIT RATIN
SEBI REGISTERED / RBI ACCREDITED / NSIC EMPANELLED CREDIT RATING AGENCY
INDUSTRY OUTLOOK
INDUSTRY OUTLOOK
PHARMACEUTICAL INDUSTRY: OUTLOOK AND CHALLENGES
PHARMACEUTICAL INDUSTRY: OUTLOOK AND CHALLENGES
DATE
05 January 2021
Mr. Vipin Malik, (Chairman, Infomerics Ratings)
Mr. Vipin Malik, (Chairman, Infomerics Ratings)
Dr. Manoranjan Sharma (Chief Economist)
Dr. Manoranjan Sharma (Chief Economist)
Mr. Sankhanath Bandyopadhyay (Economist)
Mr. Sankhanath Bandyopadhyay (Economist)
Phone: 011-24654796 104, 106,108 01st Floor, Golf Apartments
Phone: 011-24654796 104, 106,108 01st Floor, Golf Apartments, Sujan Singh Park, Maharishi Ramanna Marg, New Delhi -110003
Introduction Drugs and pharmaceuticals cover a wide ground. Th
Introduction Drugs and pharmaceuticals cover a wide ground. The global pharmaceutical industry includes biological, medicinal, and pharmaceutical products in various forms, such as, tablets, capsules, ampoules, ointments, powders, solutions, and suspensions. The overall pharmaceutical market is segmented into prescription-based products and over-the-counter medications. Further, it is also customarily divided into branded drugs and generic drugs. The Indian pharmaceutical sector today is beset with a variety of challenges. Pharma in India is riddled with the problems of high ‘out of pocket (oop) expenditure; pricing of patented drugs; prevalence of spurious medicine; shortfall in ‘healthcare manpower’ spanning pharmacists, nurses and doctors, etc.; public and government pressure to make drug prices more affordable; and inadequate health insurance schemes.
Infomerics Valuation And Rating Pvt. Ltd.
Infomerics Valuation And Rating Pvt. Ltd.
SEBI REGISTERED / RBI ACCREDITED / NSIC EMPANELLED CREDIT RATIN
SEBI REGISTERED / RBI ACCREDITED / NSIC EMPANELLED CREDIT RATING AGENCY
Union Budget 2021-22: Expectations
Union Budget 2021-22: Expectations
Mr. Vipin Malik, (Chairman, Infomerics Ratings)
Mr. Vipin Malik, (Chairman, Infomerics Ratings)
Mr. Sankhanath Bandyopadhyay (Economist)
Mr. Sankhanath Bandyopadhyay (Economist)
Dr. Manoranjan Sharma (Chief Economist)
Dr. Manoranjan Sharma (Chief Economist)
Introduction A statement of estimated receipts and expenditure
Introduction A statement of estimated receipts and expenditure, i.e., “Annual Financial Statement” of the Government of India has to be laid before Parliament in respect of every financial year from 1st April to 31st March. Hence, in this sense the budget is routine. But the budget provides an indication of the state of the economy, priorities of the Government and the use of instruments to realize identified objectives, influence direction and pace of the economy. Hence, budget, which is a document of estimates based on assumptions and strategies to achieve those estimates, is much more than a public statement of expected government revenues and scheme expenditures over a period of one year. Difficult Backdrop The forthcoming Budget would be presented against the backdrop of difficult domestic and international scenario-this is a time like perhaps no other in a century. The gravity of the macro-economic situation is manifested in the fact that this is the first recession in independent India and there have been only four instances when budgets have been presented in times of negative growth — 1958-59, 1966-67, 1973-74 and 1980-81. The enormity of COVID19 crisis makes the ascent long, uncertain and uneven. The triple whammy of contracting GDP, shrinking revenues and rising Govt. expenditure generate high budgetary expectations. The real and worrisome demand destruction concerns necessitate unleashing “animal spirits”. Three growth engines—private consumption, private expenditure and exports—are sputtering. The fourth and only functional engine, government expenditure, is working. The government has already announced a stimulus of Rs 29.87 lakh crore, amounting to 15 per cent of India’s GDP, including Rs 8 lakh crore of RBI intervention to boost money flow. Slashing of the other five big heads—interest on loans, defence, food subsidies, pensions and transfers to states—which constitute over 60 per cent of the budget- is inconceivable. The Covid-19 pandemic has created a “catastrophic” impact on the entire global economy during 2020, and India is also not insulated from its adverse impact. The effect of this is yet not over, despite the advent of the so-called “Covishield” and Covaxin” vaccines. The Indian economy, as a consequence of such disaster has experienced a massive negative (-) 23.9 per cent GDP decline in the first-quarter (April-June), of 2020 and further to negative (-) 7.5 per cent in the second-quarter (July-September) of 2020; whereas the first Advance Estimate (AE) of GDP for FY21 came out as a negative (-)7.7 per cent. There is the real and worrisome concern of the first recession in Independent India. Supply-side disruptions have also fuelled higher inflation, therefore putting Indian economy in a double-whammy with lower economic growth and higher inflation. There has to be an accent on spending as in the wake of the global economic crisis of October 2008 with a fiscal deficit between 5 and 7 per cent of the GDP. Priority expenditure areas are health, infrastructure and urban unemployment.
Fiscal Deficit The major challenge before the government is a
Fiscal Deficit The major challenge before the government is a deteriorating fiscal balance and an increasing fiscal deficit. The 2020-21 Budget did commit to a 3.5 per cent of GDP fiscal deficit target. However, as a fallout of the Covid-19 pandemic, the economic scenario has become fuddled, and the fiscal deficit reached 135.1 per cent of FY21 target in November 2020. Further, deficits of both center and states are bound to increase due to inclusion of off-budget items and higher capex, and other expenditure commitments for extending the vaccination programme, providing income support to the poorest, recapitalization of banks (if not by any other schemes like aggressive asset sale or any other schemes like “bad bank”) and other unanticipated expenditures. The Centre might follow a relaxed fiscal roadmap to bring down the budget deficit to 4% of GDP by 2025-26. This shall require amendments to the Fiscal Responsibility and Budget Management Act. Despite fiscal constraint, it has to be realized that higher capex (non-defence) to increase investment in construction and infrastructure is a prerequisite to broad-Based development. Beneficial repercussion effect will depend on the quality of expenditures in coming years, which has the potential for employment generation and enhancing economic growth. Accordingly, a moderate relaxation of fiscal deficit target can also be tolerated (with a credible remapping of fiscal consolidation roadmap), and even the Centre and States’ debt/GDP ratio can be revised upwards given the current pandemic with wide-ranging adverse impact on many sectors in a sustainable manner. Resource Mobilisation On raising resources, the quantum of global liquidity and buoyancy in global and Indian equity markets presents an opportunity to sell assets and plough the proceeds into real economy. The monetisation of government-owned assets in defence and non-defence sectors can be massive if done aggressively at the right price. Also, the disinvestment of public sector undertakings (PSUs), for which the government had set a target of Rs 2.14 lakh crore in 2020-21, achieved only a measly Rs 11,006 crore. There has to be a credible divestment path for commercially viable companies to realize the avowed Budgetary and macro-economic objectives. The BSE is at the historic level of 50,000 and there is enough liquidity in the market. Given the serious resource crunch, the Budget could identify additional revenue streams by utilising the existing resources. Closing chronic loss-making PSUs with huge accumulated losses saves money for the exchequer. The government also needs to review the steeply rising cost of the salaries of central government civilian employees, which currently stands at Rs 10 lakh crore (both central and state government employees put together, in 2017). Closure of some ministries and development of a robust bond market to attract foreign investment would be welcome. The idea of bad bank can be successful only when it is managed by professionally trained financial experts drawing inferences from international country models (e.g., “Danaharta” of Malaysia or “Retriva” and “Securum” in Sweden during Swedish banking crisis of 1992 when the Swedish authorities engaged McKinsey & Company to help design a solution of the Swedish banking crisis of 1992). Also, it should be designed in line with the model of National Investment Infrastructure Fund (NIIF) which is a SPV raising resources from international private equities. Expenditure rationalization strategy can be explored to free up fiscal space. It is desirable to sustain expenditures on relief programs including the MGNREGA, free food, direct cash transfer programs and other social expenditure programs amid the fiscal constraint, while it may be recollected that schemes like PM-KISAN cash transfer scheme will be difficult to roll back given it was initiated just before the 2019 elections. Gaps and leakages need to be plugged since an RTI revealed that ₹ 1,364.13 crore has been paid to ‘ineligible persons’ and ‘income tax payee farmers’ till July 31, 2020.1 A major chunk of these ineligible beneficiaries belongs to five states -- Punjab, Assam, Maharashtra, Gujarat and Uttar Pradesh, as per the data. Given that rural India has emerged as India’s growth driver amid the slowdown in urban sector, further push towards rural revival is imminent both from the perspectives of uplifting growth and orienting economic policy towards employment-intensive sectors. Income generation in rural sector will act as a catalyst for demand driver for commodities from Urban India (e.g., FMCG) and also helping in multiplier effect to take place in augmenting both economic growth and employment generation. Urban unemployment, which increased to 8 per cent in December, requires an urban version of MNREGA or the Mahatma Gandhi National Rural Employment Guarantee Act to provide jobs and social security. With limited fiscal space available, instead of big-bang capital outlay, the Union Budget 2021is likely to focus attracting more foreign direct investment (FDI) into India for more job creation. A national e-commerce policy2 could be introduced with a more liberalized FDI regime in many sectors like – single brand retail trading, contract manufacturing, coal mining, digital media etc.
Among various sectors, computer software and hardware has seen
Among various sectors, computer software and hardware has seen most inflow, followed by service sector and trading. FDI norms could be relaxed further for IT, telecom, pharma, automobiles, chemicals etc. The export market is a key driver of employment generation, and to be leveraged through a policy supporting greater participation in the global value chain with rationalization of tariff regime and diversification of export base to capture more international market for exportable to exploit benefit from global markets. Probable Outcomes/Industry Expectations Atmanirbhar Bharat India might increase import duty by 5-10 per cent on more than fifty items including smartphones, electronic items, and appliances which is part of the government’s self-reliant India campaign or “Atmanirbhar Bharat” to support domestic manufacturing. Government seeks to raise additional revenue of about Rs. 20,000 crore amid the pandemic-driven slowdown through such move. However, such duty hikes may impact furniture and electric vehicles, potentially might impact Swedish furniture maker IKEA and Tesla, which plans to launch their cars in India this year. Also, such “Atmanirbhar Bharat” strategy should be designed carefully and strategically, so as not to generate any adverse impact on terms of trade, instead with enhancing strategic partnerships with countries further via whom India can benefit (i.e., better terms of trade, higher export realisations, larger market access etc.). Further there is the expectation that the government may exempt tax on long-term capital gains (LTCG) arising from sale of listed equity shares. There are issues, such as, defining long-term to two years and the charge of taxation to zero. The government may re-examine tax laws that deal with withholding tax on dividends for foreign portfolio investors (FPIs). At present, companies withhold tax at the rate of 20 per cent plus surcharge and cess on the dividend paid to FPIs, even if they invest from a jurisdiction that provides for a lower rate based on India’s double tax avoidance agreement. The textile industry has demanded implementing a uniform GST structure for apparels and textiles to address the problem of higher duties on inputs and abolishing anti-dumping duties on viscose staple fibre (VSF). In the last Budget, the Finance Ministry removed anti-dumping duties on purified terepthalic acid (PTA), a crucial input in the manufacture of textiles fibres and yarns which though impacted certain domestic manufacturers of PTA, e.g. Reliance Industries, JBF and Indian oil but benefited many fibre, yarn and garment producers who could source the input at a much cheaper price. In November 2020, the GoI withdrew anti-dumping duty on acrylic fibre to enable sweater and shawl manufacturers get the raw material at competitive prices. At present, man-made fibre is taxed at 18 per cent, spun yarn and filament yarn at 12 per cent. 3 Removing existing structural glitches e.g., in GST, many instances have shown tax credits have been blocked due to technical glitches on the online GSTN portal (say while filing relevant GST Tran-1). Rationalization of rates (especially reducing highest 28 per cent for certain intermediate goods) is also needs to be explored. Again, real estate is suffering from unreasonable distinction carved between those who developed property for sale as against others who use it for commercial leasing. While the former is allowed to avail input tax credit, the later suffer the bar imposed under GST. MSMEs Social, infrastructure sectors likely to be key focus areas of government in the first post-Covid Budget with MSMEs being an integral element of the growth strategy. The vision of an Aatmanirbhar Bharat rests on the twin principles of scale and standards. The government must devise innovative ways to boost new micro-enterprises in rural India to create more employment opportunities outside agriculture. Building the entrepreneurial capability of rural youth through business training, easing the norms to start businesses, and creating a fast loan disbursement mechanism for micro-enterprises in villages, can help infuse new entrepreneurial energy into villages. To facilitate greater credit flow to MSMEs, the government might introduce certain schemes, among other incentives, specific to MSMEs, which would provide interest subvention for small-size MSME loans, resulting in more liquidity and credit inflow in the ecosystem. MSMEs have to pay 18 percent GST to adopt digital solutions. Doing away with this or at least bringing it down considerably will reduce the cost of doing business, propel tech adoption and lead to improved efficiency and greater transparency. The government can provide further policy support to MSMEs to tide over the recessionary phase, revive the economy, ways to increase consumer demand, particularly in sectors that were hit hard by the COVID-19 crisis. The government must find ways to infuse more liquidity into the system, leave more money into the hands of consumers, and further ease the process of fund disbursement to MSMEs.
A less cumbersome GST structure and ease of taxation for MSMEs
A less cumbersome GST structure and ease of taxation for MSMEs should also be a priority. Government should extend credit facilities to MSMEs and provide means for new-age technology adoption. Rigid regulatory compliance and tax burdens should be revised, which can provide impetus for growth and expansion. This will increase hiring and businesses can largely contribute to the GDP. Revised tax policies, less complex GST structure and relevant policies that provide thrust for digital innovation can incentivize home-grown start-ups and brands. Such a solution can help MSMEs to operate in a more level-playing field which has MNCs and other established players. The Credit Guarantee Fund Scheme for Micro and Small Enterprise is currently providing the Limit upto 2 Crore only to the MSME Units. It may be amended so that the maximum benefits can be taken by the MSME Units in order to streamline their businesses. This should be amended upto 10 Crore or 20% of the Net Sales (whichever is less). The Indian start-up ecosystem has played a catalytic role in the process of growth and structural transformation. In conformity with the recent production linked incentives (PLI) schemes for many sectors, a performance-based scheme (e.g., with parameters like sustainable employment generation and social contribution) can also be explored to provide further incentives for economic growth. Reduction in personal income tax rates or other taxes seems unlikely given the fiscal constraint; but enhancing capital expenditures and schemes like MNREGA could be effective, especially incentivizing rural sector. Trade: Protection through tariff is an age-old concept in international trade. Protection is required for domestic infant industries for their development. Expansion, modernisation and competition should go together. Service Expansion: India, at present, has dearth of warehousing and cold storage facilities, rural communication services, micro-insurance services, institutional micro-credit facilities, micro-level food processing in organised sector, rural health facilities, micro-irrigation, etc. All these sectors need urgent attention. Productivity: Merger of small units and large units would definitely improve productivity as it leads to re-orgnisation of skilled manpower, reduction in operating cost, effective utilisation of fixed resources, greater market potential, effective implementation IT-Services like ERP System and promotes innovations. Investment • Complete removal of barrier for FDI investments in Healthcare, Telecommunication, Asset Reconstruction Companies, Insurance Business, all Types of e-commerce, Start-up and Venture Capital Investment, Export-oriented Automobile sector, Electric Vehicles manufacturing companies. • In aviation sector 100% FDI is allowed. But there is a strong case for all aviation related activities should also be complete free for FDI. • To export defence related items and to restrict our defence imports, 100% FDI should be allowed to defence related production. • FDI, on manufacturing business that export at least 50 per cent of should be completely make free through automatic rout. • Foreign companies are expected to take some constructive steps for the creation of agriculture supply chain. Entry of foreign players, agricultural infrastructure such as irrigation facilities, warehousing and cold storage will improve the productivity of the sector significantly. Hence, we recommend 100% FDI in agricultural related infrastructure including agricultural retailing, crop insurance, warehouse, cold storage, irrigation, organic fertilizers, equipment, etc. • In railway transportation, India should go beyond PPP model and allow FDI in high-speed railway network, design and commission of high-speed engines, signalling system with domestic players’ participation upto 25% and FDI 75%. • In financial services sector, 100% FDI in automatic rout should be allowed for Insurance, Asset Reconstruction, domestic exchanges, all types of NBFC, private banking system, Small finance companies, Technology oriented payment system companies. • The services sector, under non-finance, is the dominant sector in India’s GDP. It also attracted significant foreign investment flows, contributed significantly to exports as well as provided large-scale employment. 100% FDI should be allowed under automatic rout for real estate, hotel and restaurants, transport, storage and communication.
Services (media and entertainment, IT-ITS): 1. Government shou
Services (media and entertainment, IT-ITS): 1. Government should establish a separate agency for informal sector enterprises. 2. Informal sector should be granted as an industry status for institutional finance facilities. 3. 10 Year tax holidays should be provided to these units. 4. Compulsory purchase facilities and raw materials reserves purchase facilities should be provided. 5. Labour law relaxation should be provided. 6. GST exclusion principle should be provided to them. 7. Informal sector Zones with facilities like training, transport, warehouse, testing and lab facilities etc., should be established by government for location of these enterprises. 8. Banks should be asked to provide 1% of their credit to these informal enterprises. Healthcare Reforms The government needs to hike its health spending from the current 1.5 per cent of the GDP to at least 2.5 per cent to strengthen its medical infrastructure. Accordingly, the government must strengthen the health reforms to boost domestic health infrastructure, provide jobs, and increase health Insurance penetration with additional tax benefits. This necessitates adoption of an extensive, multifarious allocation and investments plan. While building a strong infrastructure, it is essential that in Budget 2021 additional funds be specially allocated towards training medical staff, establishing and improving the supply chain of vaccines, medicines and accessibility. To meet future needs of quality healthcare infrastructure, it is imperative to increase the overall budget allocation to this sector. The idea of Atmanirbhar Bharat should be further amplified by supporting local innovations in the field of drugs and medical devices, provision of quality healthcare access in rural India through e-health/e-medicine services. Funds must be allocated towards skill development of teachers, nurses, paramedical staff, and caregivers. Affordability of healthcare and bringing Ayurveda under Ayushman Bharat are also needed. Attempts could also be made to increase the ambit of Ayushman Bharat PM-JAY, support Innovation Adoption and Scale-up and focus on Skill Development in Healthcare Space. Technology In the evolving new normal, technology has to be a thrust area in digital adoption and business continuity by operative and promising policies that not only support innovation and business continuity but create a robust digital ecosystem. Towards this end, there has to be a focus on formulating essential regulatory guidelines and incentivize R&D of new-age technologies like Artificial Intelligence (AI), Machine Learning (ML), Blockchain, etc. to digitize B2B processes at scale – speed, costs, and productivity. Companies doing business in India have a tremendous opportunity to leverage AI across the B2B process flows right from purchase order (PO) to payments and reconciliation. Manual processes are in-efficient in terms of a cost and time perspective. E-invoicing will also help address the key issue for MSMEs– getting paid on time, besides enabling digital lending through cash flow, payment, and invoice data. Banking Sector There are likely to be several measures of interest to the banking sector in India. Loans at affordable rates and a continued moratorium on loan payments (to the extent the stresses of COVD-19 are continuing) are expected. But the banking and financial sector is under severe stress itself, and the costs of deferring interest and principal payments under moratoriums schemes cannot be absorbed by lenders over the long haul. To the extent subsidies and additional relief is needed, these will need budget. To promote digital payments and improve credit accessibility, the industry is hoping that the government will continue its agenda to improve internet infrastructure and connectivity in Tier II and Tier III cities to support digital payments across these geographies. Digital literacy and financial literacy are critical to pushing the next wave of digital payments.
Hence the government should consider offering tax breaks and in
Hence the government should consider offering tax breaks and incentives to platforms that invest in customer awareness, digital literacy and financial literacy initiatives. To lower the cost of customer acquisition and help increase financial and credit access, the government should operationalize the centralized KYC database. What is required is expediting the ongoing projects which are getting stuck for various reasons, coupled with clearance of subsidy arrears, pending dues to contractors and vendors and expediting tax refunds. Expedition of schemes like affordable housing (including housing and construction) has the potential to absorb both skilled and unskilled labour with high multiplier effects which can address rural employment generation and poverty to some extent, while resources may be earmarked to employment guarantee schemes like MNREGA to address urban unemployment issues. Such measures could beneficially impact the economy as the pandemic has adversely impacted the self-employed, informal sectors, smaller enterprises and contract-intensive jobs. In a nutshell, small-scale labour-intensive projects need to be identified which have much employment generation effect e.g., textile or handloom industry. Job-related schemes are likely to be more effective instead of direct cash transfer schemes given its potential for both job creation capacity as well as augmenting higher consumption demand. Infrastructure The government needs to restart its National Infrastructure Project (NIP) to spend Rs 111 lakh crore on 7,300 projects until 2025 and pay its pending bills. Infrastructure project financing in India is predominantly from the banking sector and a few infrastructure NBFCs. To strengthen the existing infrastructure NBFCs for enhancing their ability to finance projects and ensure completion of the National Infrastructure Pipeline (NIP) by 2025, the Union Budget could significantly increase the capital outlay towards infrastructure and also announce steps to boost infrastructure financing avenues and private sector participation. The NIP financing plan includes sourcing 2-3 percent financing from a new DFI. It is likely the government would allocate equity funds towards this in the upcoming budget. With a revamped structure and a sizeable equity capital it can leverage to provide significant funding for the infrastructure sector. Further, increased facilitation of innovative mechanisms such as loan securitisation, InvITs, etc. can also help enhance infrastructure capital. In addition, the National Investment and Infrastructure Fund (NIIF) can play a big role in channelising long-term funds – both debt and equity - to the infrastructure sector. Construction contractors are constrained by the availability of bank guarantee (BG) limits, which are required throughout the project lifecycle. For availing BGs, the companies have to provide collateral securities and provide margin money. Thus, without adequate BGs, neither can bids for new projects be made, nor can the contracts be efficiently executed. The Central government had recently taken measures to reduce the BG requirement. But this was done for a limited period and more policy initiatives are needed. Sureties (generally provided by insurers), a contractor-wise revolving BG provided to employers, could be used as security for multiple contracts may be considered. Some Income Tax relief by raising income tax slabs for the common man is expected. Also, crude could come under the Goods and Services Tax (GST) umbrella. Further, reduction in entertainment tax, incentives to give a boost for setting up manufacturing hubs and push for infrastructure spending are on the anvil. Concluding Observations Given the devastating hit to the Indian economy by the COVID 19 pandemic, the accent has to on increasing investment, creating externalities towards improving economic environment, and increasing productivity for a sustained high growth. Growth and distributive equity must receive a renewed thrust by a sharper focus on infrastructure, manufacturing, mobility, technology and urbanisation. In a deft balancing act, the FM is expected to reconcile the objectives of economic growth and distributive equity. While aiming at higher growth rate, the FM in this growth supportive Budget could stress agriculture and farmers’ welfare, the rural sector, raise farm budgetary allocations, MGNREGS and various other rural focused schemes to revive rural growth. ENDNOTES 1. Money Under PM-KISAN Scheme Going In 'Wrong Hands', RTI Data Reveals’(10 January 2021) Outlook India. 2. “FM may roll out red carpet for FDI” (23 January 2021) The HinduBusinessLine. 3. The HinduBusinessLine (20 January 2021).
Source: “Indian Pharma a picture of He
Source: “Indian Pharma a picture of Health” (27 Nov 2020) Business Standard The Indian Pharmaceutical Market (IPM) registered a growth of 9.6 per cent for the month of October 2020 on top of a growth of 4.5 per cent in September 2020 (Chart1). The Indian Pharmaceutical Market (IPM) recorded sales of Rs. 1,43,999 crore for moving annual total (MAT) basis during October 2020.6 Amongst the top ten corporates, Mankind exhibited the highest growth of 8.6 per cent, followed by Torrent Pharma at 7.9 per cent. Himalaya exhibited growth of 14.8 per cent while Glenmark Pharmaceuticals saw growth at 16.6 per cent in October 2020, while amongst the 26 to 50 ranked corporates, Boehringer Ingelheim registered the highest growth of 19.9 per cent followed by Medley at 15.6 per cent, while Danone registered the highest growth of 31.2 per cent.7 Cardiac registered a monthly growth of 19.5 per cent in October 2020 as compared to 17.1 per cent in September 2020, while anti-diabetic registered growth of 9.7 per cent compared to 6.5 per cent in September 2020. The respiratory medicines showed marginal improvement and are -6.6 per cent in October 2020 as compared to -10.5 per cent in September 2020. Post unlockdown since June 2020, the struggle for anti-infectives 1.4 per cent in September 2020 continues to display a positive trend with a growth of 6.6 per cent in October 2020. Associated therapy like gastro exhibited growth of 13.6 per cent in October 2020 as against 5.5 per cent in September 2020, while vitamins bounced back with a growth of 22.6 per cent in October as against 16.3 per cent September 2020. The pain and analgesics are at 2.8 per cent in October 2020 as against -4.3 per cent in September 2020. Digital marketing strategies and branding techniques with new brand launches and doctor outreach programmes saw a surge and chronic therapies, i.e., regular medicines, e.g., cardiac/hypertension drugs performed well, further October’20 data showed other therapy areas like respiratory ailments saw some revival.8 Sales of antivirals have also increased in the anti-infective category. The overall market would get a boost if antibiotic sales also increase. Companies such as Cipla (with a dominant market share in the respiratory inhalation segment) see demand for respiratory drugs growing in especially during winter, particularly at the next wave of the Covid-19 pandemic. Cipla, Glenmark, Cadila Healthcare, DRL, Hetero that are selling key drugs like remdesivir, favipiravir and so on are witnessing traction in the segment and expect the trend to continue for one or two more quarters. With the easing restrictions and further opening of the economy, sales are likely to increase further. Pharma firms launched brands through digital webinars, but some have also warmed up to targeted digital marketing techniques. 3
The Growth of e-Pharmacy With e-commerce flourishing in India,
The Growth of e-Pharmacy With e-commerce flourishing in India, the popularity of e-pharmacy too is on the upsurge. The sale of medicines in India is governed by the Drug & Cosmetics Act (1940) and Pharmacy Act (1948) – both of which were passed decades before the advent of the internet. Indian e-pharmacies, however, have been continually on the radar of Drugs Controller General of India (DCGI) since 2016. 9 Though certain issues about the concept of e-pharmacy have been raised by posing issues of safety, lack of dosage instructions, and potentially unregulated sale of prescription drugs, retail pharmacies too suffered from safety issues, like- authenticity of the pharmacist. Another important advantage of e-pharmacies over retail pharmacies is how the former can indirectly improve medication observance; especially among elderly patients with chronic diseases or disabilities with timely door delivery of medicines. The global e-pharmacy market, estimated at $69.7 billion in 2019, is expected to grow 17 per cent year-on-year (y-o-y) to $244 billion in 2027. India’s share in the global market is comparatively small. At $9.3 billion in 2019, it is expected to increase at a compound annual growth rate (CAGR) of 18 per cent to $18 billion by 2023. 10 Compared to developed countries like US and Europe, India’s e-pharmacy market is relatively unstructured and fragmented. Growth Triggers • Innovation and R&D: Development of new complex generic drugs together with the New Drugs and Clinical Trial Rules and the Atal Innovation Mission. • Medical Tourism: Quality services at small prices vis-à-vis the US, Europe, and South Asia. • Infrastructure Development: An elaborate network of institutions, products and processes with a strong track record and the highest number of US-FDA compliant pharma plants outside the US. • Strong Drug Manufacturing: Core competency in low-cost generic drugs and a movement towards end-to-end manufacturing. • Pharmaceutical Cluster: Well established clusters in Andhra Pradesh, Gujarat, and Maharashtra. 4
Growth Drivers for e-pharmacy • Internet penetration rose rapi
Growth Drivers for e-pharmacy • Internet penetration rose rapidly in India due to the availability of smartphones at affordable prices and deployment of 4G. With the Digital India Program, the number of internet users increased significantly. • Online shopping for essentials and medicines is growing at a fast pace. • Government initiatives like the Jan Aushadhi Program aim to ensure the general population in the country has access to quality and affordable medicines. Some well-known e-pharmacy players are Netmeds, EasyMedico and MedLife, and start-ups like 1mg, Practo, Myra, etc. but they need to go to scale. In August 2020, Reliance Retail acquired a majority stake in startup Netmeds.11 PharmEasy also took a step toward consolidation by merging with Medlife. E-commerce giant Amazon too has launched online drug delivery services. Times of India (ToI) on 10 December 2020 reported12 US-based private-equity firm TPG is exploring at a 7 per cent stake in the parent company Pharmeasy. According to the news, TPG has incorporated a Special Purpose Vehicle (SPV) in Singapore for carrying out the proposed investment, to deepen its distribution network in India. “Covid vaccine: Outreach from the lab to the last mile”13 With the four pharma giants (Pfizer, Moderna, Oxford and Sputnik) the outreach of the Covid-19 vaccine to the entire nation poses certain challenges in terms of logistical, infrastructure and crowd management. Another big challenge is of cold storage requirements. For instance, vaccines from Pfizer or Moderna require a storage temperature -70 degree centigrade and -20 degree centigrade respectively, which is not possible in Indian conditions. India has more than 6.3 lakh villages and around 7,935 towns. Since the reach of the vaccine in every nook and corner of the country is important, the government needs to choose a medium of transportation, such as, the Railways to ensure connectivity. The train coaches have to be installed with refrigeration facilities and power systems to the cold storage system should be independent. The electronic vaccine intelligence network (eVIN) under the UIP has to be extended to the coronavirus vaccine and the National Cold Chain Management Information system (NCCMIS) can be used to track the inventory levels and distribution. India currently has just28,000 cold storage units. Companies like Amul, Hatsun and HUL, which are in the frozen desserts category, can share their knowledge and expertise in cold storage. 5
Government Initiatives The ‘Pharma Vision 2020’ by the governm
Government Initiatives The ‘Pharma Vision 2020’ by the government’s Department of Pharmaceuticals aims to make India a major hub for end-to-end drug discovery. Under Budget 2020-21, allocation to the Ministry of Health and Family Welfare was INR 65,012 crore.14 INR 6,429 crore15 was allocated to health insurance scheme Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). In November 2019, the Cabinet approved the extension/renewal of the extant Pharmaceuticals Purchase Policy (PPP) on the same terms and conditions while adding one additional product namely, Alcoholic Hand Disinfectant (AHD) to the existing list of 103 medicines. The Union Cabinet approved on 20 November 2019 extension/renewal of Pharmaceuticals Purchase Policy (PPP) for pharmaceutical Central Public Sector Undertakings (CPSUs) till their closure/strategic disinvestment in order to enable them to generate revenues to pay salaries to their employees, help them in keeping the costly, sophisticated machinery in running condition resulting in higher return at the time of disposal in case of CPSUs under closure and better valuation in case of CPSUs under disinvestment. Background Pharmaceuticals Purchase Policy (PPP) was approved by the Cabinet on 30.10.2013 for a period of five years in respect of 103 medicines manufactured by pharma Central Public Sector Units (CPSUs) and their subsidiaries. The policy is applicable to purchases by Central/ State Government departments and their Public Sector Undertakings etc. The pricing of the products is done by National Pharmaceutical Pricing Authority (NPPA). The procuring entity can purchase from Pharma CPSUs and their subsidiaries subject to their meeting Good Manufacturing Practices (GMP) norms as per Schedule ‘M’ of the Drugs & Cosmetic Rules. The term of the policy expired on 09.12.2018. Meanwhile, Cabinet decided on 28.12.2016 to close Indian Drugs and Pharmaceutical Limited (IDPL) & Rajasthan Drugs and Pharmaceuticals Limited (RDPL) and strategically sell Hindustan Antibiotics Limited (HAL) & Bengal Chemicals and Pharmaceutical Limited (BCPL), after meeting their liabilities from proceeds of sale of their surplus land to government agencies. Subsequently, Cabinet has modified its decision on 17.07.2019 permitting to sell surplus land as per revised Department of Public Enterprises guidelines dated 14.06.2018. Separately, Cabinet Committee on Economic Affairs (CCEA) decided on 01.11.2017 for disinvestment of 100% GOI equity in the fifth pharma CPSU, namely Karnataka Antibiotics & Pharmaceuticals Limited (KAPL). It has been proposed to extend the policy till final closure/sale of pharma CPSUs. Source: ‘Cabinet approves extension/renewal of the extant Pharmaceuticals Purchase Policy (PPP) with the same terms and conditions while adding one additional product namely, Alcoholic Hand Disinfectant (AHD) to the existing list of 103 medicines till the final closure/strategic disinvestment of the Pharma CPSUs’(20 November 2019) PIB, Delhi https://pib.gov.in/PressReleasePage.aspx?PRID=1592572. 6
Decent Response from the Production-Linked Incentive (PLI) Sche
Decent Response from the Production-Linked Incentive (PLI) Scheme As Livemint has reported on (2 December 2020),16 the production-linked incentive (PLI) schemes received 215 applications from 83 bulk drug makers and 28 applications from 23 medical device manufacturers,17 indicating positive response against the PLI scheme. The PLI Schemes for Bulk Drugs and Medical Devices was approved by the government on 20 March 2020.18 Looking at the increasing imperative of drug security, support to domestic production capability in bulk drugs would ensure higher resilience of the Indian pharmaceutical industry to external shocks. The PLI scheme for medical devices will help meet the objective of product diversification and production of innovative and high-value medical devices in India. These initiatives have the potential to contribute significantly to achieving higher objective of affordable healthcare in the country and globally on a sustained basis. India pushes for API manufacturing and Investments, amid Covid-19 outbreak The novel coronavirus pandemic has caused a host of problems in the global pharmaceutical supply chain—particularly in China, a major producer of drug ingredients. This could be an opportunity for India to work on a plan to supersize its own ingredient manufacturing to combat Chinese dominance in the market, by escalating domestic production of pharmaceutical ingredients to counteract a perceived over-reliance on Chinese imports now hampered by COVID-19 shutdowns. At the beginning of the pandemic, the central government of China imposed a lockdown in Huawei and other cities in the Hubei province to contain the spread of the novel coronavirus that causes the infectious disease, COVID-19. Subsequently, major Indian pharmaceutical companies expressed concerns India will face shortages in the supply of important production inputs. Hubei province alone is host to some 42 pharma manufacturing facilities, of which a large number produce inputs for medicaments or so-called Active Pharmaceutical Ingredients (APIs).20 China provides 70 per cent of the raw materials that Indian companies use for the manufacture of pharmaceutical products. The Directorate General of Trade Remedies (DGTR) on April 30, 2020 recommended extending the anti-dumping duty on imports of sodium citrate21 from China for another five years, after an investigation found that there was continued dumping of the Chinese product in India hampering the domestic industry.22 7
Further, with the Covid-19 pandemic getting the Indian drug reg
Further, with the Covid-19 pandemic getting the Indian drug regulatory system working in a faster gear, a Government panel is considering measures for faster approval process and use these to overhaul the drug regulatory system.23 The explorations include how the Central Drugs Standard Control Organization (CDSCO’s) manpower can be efficiently utilised to make the approval faster, while another measure under discussion was on giving clearances to clinical trials faster. India has identified production of over fifty raw materials and active pharmaceutical ingredients (APIs) as part of its "China-plus-one" policy to fill in supply gaps of affordable medicines.24 The plan includes investing INR 9,889.10 crore25 in domestic pharmaceutical producers and potentially reviving state-run companies to ramp up production. In early March 2020, India stopped exports of many APIs and drugs from China and enhancing production of paracetamol and antibiotics penicillin and ciprofloxacin. In the U.S., which relies on Indian APIs for a range of medications, the federal government has sparred with its South Asian supplier to keep the taps open, particularly for antimalarial hydroxychloroquine. The longtime generic med has received a raft of interest––including from President Donald Trump––as a possible treatment for COVID-19. Earlier, India walked away from a full-scale export lockdown on hydroxychloroquine. India, which produces around 47 per cent of the U.S. supply of hydroxychloroquine, according to Bloomberg Intelligence, agreed to license its stock of hydroxychloroquine to "badly affected" countries and others that rely on its supply of the drug.26 India Export of Pharmaceuticals Indian drugs are exported to many countries in the world, with the US as the key market. Generic drugs account for 20 per cent of global exports in terms of volume, making the country the largest provider of generic medicines globally. Pharmaceutical exports from India include bulk drugs, intermediates, drug formulations, biologicals, Ayush & herbal products and surgicals. India’s pharmaceutical industry has been growing with the large-scale production of low-cost medicines, whereas low-income countries have an average India-dependency of 27.2 percent.27 There are variations between countries; e.g., countries with extremely high dependence on Indian health-related goods: Nepal, for instance, more than 60 percent of all health-related imports come from India; Malawi, meanwhile, gets more than half of such goods from India. Burundi, Mozambique, Tanzania, Uganda, and Guinea—are not only recording an above-average dependence on India but also an above-average dependence on foreign goods in general. However, due to Covid-19 crisis and the subsequent lockdown measure, India’s pharmaceutical exports took a hit by about $1.5 billion due to export restrictions on a few drugs and supply disruptions, resulting in $20.58 billion for FY20, against the estimated target of $22 billion. Overall in FY 20 the growth of exports is 7.5 per cent in FY20 compared to FY19 (up to March), but due to Covid-19 crisis and lockdown the export growth declined by 23 per cent in March FY 20 compared to FY19. 8
Drug formulations and biologicals, which contribute almost 72 p
Drug formulations and biologicals, which contribute almost 72 per cent of exports, showed 9.5 per cent growth in FY20. However, export of bulk drugs and drug intermediates posted negative growth (-0.73 per cent).28 India has exported pharmaceuticals to more than 200 destinations during FY20 with North America as the largest exporting region with 34 per cent share.29 About $6.7 billion worth of drugs was exported to the US with 15.8 per cent growth. This constituted almost 32.74 per cent of India’s total exports followed by Africa with 17 per cent share and Europe with 15 per cent share. India’s export to China in FY19 was $230 million and in FY20, it is $228 million.30 India is still dependent on China to an extent of 60-70 per cent of its needs of bulk drugs and has faced disruption in the supply chain due to Covid-19. India’s Pharmaceutical Exports FY20 vs FY19 (USD million) Source: https://www.idma-assn.org/pdf/idma-bulletin-21-may-2020.pdf Major Export Destinations in India’s Pharma Export in FY20 (%) Source: “Indian Pharmaceutical Industry” (4 December 2020) India Brand Equity Foundation (IBEF). 9
Major Projects in Pharmaceuticals in India The Telengana sta
Major Projects in Pharmaceuticals in India The Telengana state government in Hyderabad also trying to expedite the Hyderabad Pharma City (HPC) Project, in light of firms planning to shift out of China post Covid-19. The government has acquired earlier 8,400 acres for the project; and planning to acquire another 6,800 acres in next three months. According to the HPC Master Plan, the project is to be completed in three phases by 2025.32 HPC, which is coming up at Mucherla village in Rangareddy district has link roads and other infrastructure facilities. The Chaygaon, Kamrup Rural project with a 100 acre project and with an approximately Rs. 153.64 project cost unveils that there is good potential for the pharmaceutical industry in the region and therefore it is an important destination for investments into the entire range of activities involved in pharma manufacturing. This presents an opportunity for Pharma manufacturing companies can set up units in Assam to serve both the local markets and the markets in Bhutan and Myanmar, and Active Pharmaceutical Ingredients (API) markets in Bangladesh. Major Players/Investors Source: Information compiled from company websites. 10
Source: Compiled from company web
Source: Compiled from company websites/Earnings Calls/Quarterly Disclosures/Financials. According to the Indian Drug Manufacturer’s Association (IDMA) [30 May 2020]34 bulletin, in a webinar on ‘Medical Devices and API sector: Challenges &Emerging Opportunities’ was held on 22nd May, 2020 for business and trade collaboration between India and Japan in the post COVID-19 scenario, Japanese Companies were invited to invest in Indian Pharmaceutical and Medical Devices industry.35 The webinar was organized by the Embassy of India, Tokyo in partnership with the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India. Representatives of Japan Pharmaceutical Traders Association and Japan Federation of Medical Devices Associations deliberated on the Post COVID-19 challenges & opportunities for Pharmaceutical & Medical Device sectors and its impact on the global supply chain and suggested that cooperation between the two countries can contribute to stabilize the supply-chain of especially APIs and Medical Devices. ZNZ pharma, (a London-based bio-pharmaceutical platform) has acquired majority-stake in Hyderabad based specialty generics company Celon Laboratories Private Limited.36 ZNZ Pharma is backed by CDC Group, the UK’s publicly owned impact investor, Development Partners International (DPI) through its ADP III fund and the European Bank for Reconstruction and Development (EBRD). The platform is planning to invest in Celon’s development of a new, state of the art oral and injectable manufacturing facility for both critical care and oncology that will serve a wider set of markets. Seeing a sharp rise in the demand for its suite of nutraceutical products after the Covid-19 outbreak, Bengaluru-based Juggat Pharma will be investing ~60 crore in FY22 for two new manufacturing units in Uttar Pradesh and Madhya Pradesh.37 The company is part of the over 50-year-old Jagdale Industries. While the company will have separate lines for its nutraceutical products at the two new factories, it will also have tetrapak packaging lines for environment friendly packaging. The company has five manufacturing plants, one each for pharmaceutical, nutraceutical and ayurvedic products, and two others for tetrapak packaging. The company's nutraceutical range has six products in the market. The firm is ready to launch two more products — an anti-obesity drink and a low-sugar variant for the cardiac segment. 11 11
Source: “India’s Pharmaceutical Industry – Foreign Investment O
Source: “India’s Pharmaceutical Industry – Foreign Investment Opportunities, Incentives” (25 November 2020) India Briefing;https://www.india-briefing.com/news/indias-pharmaceutical-industry-investment-trends-opportunities-incentives-18300.html/ Industry Risk Sales volume growth remains volatile due to slower volume growth; e.g. volumes declined in November 2020 by 6.9 per cent y-o-y as against a 0.6 per cent growth in October 2020. 38 One of the reasons of decline may be the lower sales of acute therapy drugs due to better hygiene. Within acute therapies, anti-infective growth fell to 0.2% in November 2020 against 6.6% in October 2020. In addition, there was some stocking at user ends in October too, which led to a lower take-off in November,2020. 39 On the other hand, chronic therapies such as cardiac have shown growth, and anti-diabetic registered a modest growth. While revenue growth might remain subdued, but profitability is likely to increase due to lower expenses. Production at pharmaceutical units continues to be impacted due to the lockdown-driven disruption, with companies facing challenges in distribution, manufacturing and logistics. The market was pulled down by acute therapies, with demand for these medicines crumpling by nearly 21% in April 2020 (YoY). 40 With prescriptions for anti-infectives down, sales of pain, gastro and vitamins were also impacted. Among the therapies, chronic saw low single-digit growth of around 5%, aided by pre-buying from patients in cardiac and diabetes categories. In this chronic therapy category, cardiac (13% YOY) and anti-diabetes (10% YoY) segments managed growth. 12
The decline in pharma growth over March 2020 stood at 7 per cen
The decline in pharma growth over March 2020 stood at 7 per cent, when the lockdown had just started, while trailing 12-month growth stood at 8.6 per cent YOY. Pricing has driven nearly 60 per cent of growth for the industry on the trailing 12-month basis, with volume growth attributing an insignificant 0.7 percentage point and contribution from new launches at 2.8 percentage points. The current low production is due to a host of factors brought on by the pandemic: lockdown restrictions causing shortage of labour, delay in transporting raw material and finished goods, social distancing measures complicating processes etc. Shortage of labour at manufacturing sites and ancillary units, key raw materials being stuck at ports, and a delay in transportation of raw materials and finished products to and from the market are some major issues. In FY21, the domestic pharmaceutical market is expected to grow at 1-5 per cent, with a muted 4-8 per cent YOY growth for major companies. Earlier, the pharma market valued at around Rs 1.49 lakh crore ($20 billion) typically recorded strong YoY growth of 10-12 per cent.41 Developing a domestic vibrant market of APIs by reducing dependence from Chinese imports is crucial for India. However, India depends on China for raw materials of drugs, which makes Indian companies vulnerable to supply disruptions. While India is an exporter of certain APIs, the country depends especially on China for fermentation and intermediates; and when supply disruptions happened from Wuhan the paracetamol went up 40 per cent in India.42 India needs to focus on cost-effectiveness, quality and technological advancements for steady development of this sector, which has immense latent potential both for the domestic economy and for exports. Critical Success Factors Massive disruptions caused by the COVID 19 and the strife with China have unmistakably brought home the necessity of an uninterrupted supply chain and the development of an enabling ecosystem. Such diversification in conformity with India’s “Look East” policy will diffuse concentration risks and the concomitant factors and provide an impetus to domestic manufacturing. This is a tall order and necessitates, inter-alia, revamped structure of the pharma industry and concerted efforts by all stake-holders. Towards this end, the government of India launched new policies and programmes to boost local access and affordability to quality healthcare by wide spectrum measures. Such measures include targeted financial incentives to promote manufacturing of raw materials and to induce a greater domestic production of APIs. The Union Cabinet’s strategic action of setting up three API parks with common utilities, identifying and reducing the dependencies on China for 53 APIs and the contextually significant accent on Production linked incentives (PLIs) scheme provide an impetus to this sector. Welcome Production linked incentives (PLIs) of INR 1.45 lakh crore to the ten identified sectors-cell battery, auto, pharma, textile, food, telecom will help them go to scale, create jobs, enhance skills, strengthen the Make in India mission, cut costs, attract investment and boost exports. 13
Since about 35-40 per cent of the capacity is idle, effective u
Since about 35-40 per cent of the capacity is idle, effective use of the existing API units is necessary for the welcome transition to be self-reliant. This thesis can be substantiated by the McKinsey report, which underscored the need for incentivization of the local production of APIs. The process of steady development of the sector is, however, constrained by dearth of delivery points and the lack of accessibility to drugs. Rise in disposable income, greater spending on healthcare, government sponsored programmes, heightened consciousness of health issues and expanding insurance coverage will provide a fillip to this sector. Given the humungous potential of the pharma sector, synchronized efforts are called for to develop innovative business models for equilibrium in drug price controlling and local manufacturing costs. It is commonly observed that higher healthcare public spend brooks no delay. But it is not so commonly realized that India’s healthcare public spend of 1.3 per cent of GDP (up from 0.9 per cent two decades ago) is grossly inadequate for a robust health system. The proposed higher public healthcare spend is projected to increase to 2.5 per cent by 2025. This requires medical college hospitals in underserved areas to improve health outcomes, enhance human productivity and employment. The Fifth National Health Survey revealed greater vaccination, falling fertility rate, better sanitation, etc. But stunting, wasting and marked state-wise differences cause concern. Improved vaccination, reproductive health, fertility ratio, sanitation, infant and child mortality, climate change and environmental damage need to be holistically considered for a comprehensive examination of the pharmaceutical industry in India. The emerging policy prescriptions from Fifth National Health Survey also have important implications for the growth and sustenance of this sector in India, particularly in the wake of data- and technology-driven changes sweeping the industry. Such tectonic shifts require the pharmaceutical industry to effect a paradigm shift from their traditional sales-based model to an access driven commercial model. Such changes acquire a sense of urgency because of the emerging challenges of demand forecasting, price fluctuation assessment, risk management, inventory management, role of online medicine aggregators/distributors/ e-commerce and increasingly stiffer regulatory requirements. ENDNOTES 1. Times of India (8 December 2020) https://www.timesnownews.com/videos/et-now/news/here-is-how-india-will-decide-which- covid-19-vaccine-to-approve/83196 2. According to the India Brand Equity Foundation (IBEF) Pharma Industry report in October 2020, see https://www.ibef.org/ industry/pharmaceutical-india.aspx 3. USD 20.03 billion, see ‘Indian Pharmaceuticals Industry Report’(March 2020) India Brand Equity Foundation(IBEF) and also “An Overview of the Pharma Industry in India”( 26 October 2020) by Groww: https://groww.in/blog/overview-of-pharma-industry-in-india/ 4. USD 18.12 billion. 5. Indian Pharmaceutical Industry (August 2019) IBEF Report https://www.ibef.org/archives/industry/indian- pharmaceuticals-industry-analysis-reports/indian-pharmaceuticals-industry-analysis-august-2019 6. PHARMABIZ.COM (10 November 2020) http://www.pharmabiz.com/NewsDetails.aspx?aid=133380&sid=1 14 14
7. PHARMABIZ.COM (10 November 2020) http://www.pharmabiz.com/N
7. PHARMABIZ.COM (10 November 2020) http://www.pharmabiz.com/NewsDetails.aspx?aid=133380&sid=1 8. Indian Pharma a picture of Health” (27 Nov 2020) Business Standard. 9. “E-pharmacies in India: Can they improve the pharmaceutical service delivery?”(June 2020) by Gautam Satheesh, Sandra Puthean, Vaibhav Chaudhary, Journal of Global Health http://www.jogh.org/documents/issue202001/jogh-10-010302.pdf 10. “E-commerce: Will e-pharmacies become the norm?”(24 October 2020) Express Pharma https://www.expresspharma.in/guest-blogs/e-commerce-will-e-pharmacies-become-the-norm/ 11. “Reliance Retail acquires majority stake in Netmeds for Rs 620 crore”(August 2020) Business Standard https://www.business-standard.com/article/companies/reliance-retail-acquires-majority-stake-in-netmeds-for-rs-620-crore-120081900007_1.html 12. “TPG looks to Acquire 7% stake in Pharmeasy parent API Holdings”(10 December 2020) Times of India. 13. Companies like Amul, Hatsunand HUL, which are in the frozen desserts category, can share their knowledge and expertise in cold storage” (9 December 2020), column by K Rajeshwari and Praveen Ram; The HinduBusinessLine. 14. USD 9.30 billion. 15. USD 919 million. 16. Pharma PLI scheme sees good response”(2 December 2020) Livemint. 17. Pharma PLI scheme sees good response”(2 December 2020) Livemint. 18. Initial guidelines issued on 27 July 2020 were amended based on the feedback received from the industry. The revised guidelines were issued on 29 October 2020. 19. T. Thacker, “Coronavirus Pandemic Threatens to Cut Pharmaceutical Industry’s Lifeline,” Economic Times, January 30, 2020, https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/coronavirus-pandemic-threatens-to-cut-pharmaceutical-industrys-lifeline/articleshow/73753415.cms?from=mdr. 20. ‘Building India’s Global Health Strategy: Beyond the Role of ‘Pharmacist of the World’(May 2020) Observer Research Foundation report https://www.orfonline.org/wp-content/uploads/2020/05/ORF_SpecialReport_106_Global_Health_Strategy.pdf 21. Sodium citrate is a key chemical compound that comes in the form of monosodium citrate, disodium citrate and tri sodium citrate. It is mainly used as an expectorant and a urine alkanizer. It is also used as a pharmaceutical aid and as a food additive in dairy industries for manufacturing of cheese and beverages. It is also used as an acidity regulator in drinks and as an emulsifier for oils when making cheese. 22. ‘India extends anti-dumping duty on Chinese sodium citrate used by Pharma industry’(30 May 2020) IDMA Bulletin LI (20) 22 to 30 May 2020; p-28 https://www.idma-assn.org/pdf/idma-bulletin-30-may-2020.pdf 23. Press Trust of India, NDTV, 24.05.2020. 24. https://www.fiercepharma.com/manufacturing/india-hoping-to-challenge-chinese-dominance-plans-drug-ingredient-produc tion-push 25. USD 1.3 billion converted at USD/INR 76.07 on 25 may 2020. 26. https://www.fiercepharma.com/manufacturing/india-hoping-to-challenge-chinese-dominance-plans-drug-ingredient-produc tion-push 27. Building India’s global health strategy: Beyond the role of ‘Pharmacist of the world”(6 May 2020) Observer Research Foundation (ORF) https://www.orfonline.org/research/building-indias-global-health-strategy-beyond-the-role-of-pharmacist-of-the-world-65715/ 28. Pharma exports fail to meet FY20 target due to curbs’(9 May 2020) Financial Express https://www.financialexpress.com/industry/pharma-exports-fail-to-meet-fy20-target-due-to-curbs/1953136/ 29. Pharma exports grow 7.57% in FY20”(8 May 2020) The Hindu; https://www.thehindu.com/business/pharma-exports-grow-757-in-fy20/article31537069.ece 30. Pharma exports fail to meet FY20 target due to curbs’(9 May 2020) Financial Express https://www.financialexpress.com/industry/pharma-exports-fail-to-meet-fy20-target-due-to-curbs/1953136/ 31. Invest India https://www.investindia.gov.in/sector/pharmaceuticals 32. Hyderabad Pharma City Project to be fast tracked’(23 May 2020) Times of India https://timesofindia.indiatimes.com/city/hyderabad/pharma-city-project-to-be-fast-tracked/articleshow/75904988.cms 33. https://advantageassam.com/assets/front/pdf/shelf-of-projects/Pharmaceuticals/Pharmaceutical-Park-at-Chaygaon- Kamrup-Rural.pdf 34. https://www.idma-assn.org/pdf/idma-bulletin-30-may-2020.pdf 35. Japanese Companies invited to invest in Indian Pharmaceutical and Medical Devices industry’(30 May 2020) Indian Drug Manufacturer’s Association (IDMA) [30 May 2020] bulletin; also PIB (22 May 2020) https://pib.gov.in/PressReleasePage.aspx?PRID=1626121 36. “ZNZ Pharma buys majority stake in Celon Laboratories”(23 November 2020) the HinduBusinessLine and http://www.pharmabiz.com/NewsDetails.aspx?aid=133681&sid=2 37. “Juggat Pharma to set up two plants in FY22”(9November 2020) Business Standard. 38. “Slowing sales a concern for Indian pharma companies”(8 December 2020) Livemint. 39. Ibid. 40. ‘Pharma shrinks 12%in Apr, worst in 3 yrs’ (25 May 2020)Times of India. 41. “Slowing sales a concern for Indian pharma companies”(8 December 2020) Livemint. 42. Far from reach (15 May 2020) Down To Earth. 15
Mr. D. Suresh Pai
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Quis iMr. D. Suresh Pai
Mobile No.: +91 8929802937, Email: dspai@infomerics.com
Mobile No.: +91 8929802937, Email: dspai@infomerics.com
Address: Flat no. 2 Panchajanya II Main Road, NOBO Nagar Kamma
Address: Flat no. 2 Panchajanya II Main Road, NOBO Nagar Kammanahalli,
Main Road Off. Bannerghatta Main Road, Bangalore - 560076
Main Road Off. Bannerghatta Main Road, Bangalore - 560076
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