Will the pharma industry get its separate ministry?

Source: PharmabIz

Will the country ever establish an exclusive ministry for the pharma and medical devices industry? That is the billion-dollar question that the corridors of the pharma industry in the country are asking, even as the pharma and medical devices sectors are reaching new heights. The country, which was a 100 percent importer of medicines until the early 1970s, has come a long way to earn the title of ‘the pharmacy of the world,’ exporting affordable quality medicines to more than 200 countries worldwide, including developed countries like the US and Europe.

What is surprising is that the pharmaceutical industry in the country has achieved its current global status without benefiting from an ideal policy and regulatory environment, primarily because the industry is controlled by different ministries and agencies. The Ministry of Chemicals and Fertilizers regulates administrative and pricing policies, while the Union Health Ministry oversees the quality of drugs produced and marketed in the country. Investment, intellectual property rights, and export-related policies are governed by the Ministry of Commerce and Industry.

This multiple regulatory mechanism often hinders the full potential growth of these sectors. There is no doubt about the growth potential of the pharmaceutical and medical devices industries in the country. Therefore, the need of the hour for these sectors to reach their full potential is an exclusive ministry.

The government is not oblivious to this issue. In fact, the Union government established a separate Department for Pharmaceuticals under the Ministry of Chemicals & Fertilizers in July 2008. However, it was the late Anant Kumar, the then Minister of Chemicals & Fertilizers, who initiated the process for the formation of a dedicated ministry for pharmaceuticals and medical devices in 2015.

Since the current government came to power at the Centre in 2014, there have been renewed discussions about creating a separate ministry for pharmaceuticals and medical devices. The minister reiterated this in 2017, and the government held discussions with various stakeholders. The matter was also brought to the attention of the Prime Minister’s Office, which reportedly acknowledged the need in light of the substantial growth potential in these two industry segments in the coming years.

However, the Union government has appeared to be hesitant on the issue since then, with no visible progress. The demand for a separate central ministry exclusively for the pharmaceutical and medical device sectors has been a long-standing request, which successive governments at the Centre have largely ignored.

As the Indian pharmaceutical and medical devices industries are poised for significant growth, there is an urgent need to establish an appropriate regulatory environment for their development. The Covid-19 pandemic has once again highlighted the importance of the Indian pharmaceutical and medical devices industries and underscored the necessity of having an exclusive ministry for these sectors to create the appropriate regulatory framework for their growth.

From a mere Rs.10 crore in 1948 to over Rs. 2 lakh crore at present, the Indian pharmaceutical industry has undoubtedly experienced tremendous growth. Now, the Indian pharmaceutical industry rightfully deserves its own ministry at the Centre.