Move Away From Protective Approach: Piyush Goyal Calls for Global Regulatory Convergence, More Pharma R&D
New Delhi: Commerce and Industry Minister Piyush Goyal on Sunday called for making the pharmaceutical sector more attractive for investments in clinical trials and research and development, while urging domestic regulators to look at global practices and adopt best practices.
He also suggested that the industry develop resilient supply chains and not depend on one or two geographies for necessary imports.
"I don't mind if there is an import content, which is necessary (for product development). But you have to see if it is available in many geographies or many companies, all over the world, so that no one or two countries or companies can hold a gun and hold you to ransom," he said here while addressing an event of the pharma sector.
He said that depending on one country or company will hurt businesses.
On investments, Goyal said there was a need to keep an open mind and move away from a protective approach, as such practices were no longer relevant.
"We can't work with a very protective mind; those days are gone ... We have to be more inviting for investments coming to India for clinical trials, patenting their products here, for doing R&D here, for introducing new products; it needs a total reorientation of thoughts," he said.
The minister asked the domestic regulators to study regulations of developed countries, take a cue from what is happening in the world.
"And look at your own regulations for more regulatory convergence with the developed world because unless our mindset and thoughts are aligned with the developed world, India cannot aim to become a developed country for 2047," he said.
"We need to hear the investors who want to come to India, hear the demand of governments globally and together craft out a new pathway for success of the industry in the years to come," he added.
The whole world, he said, is now looking for resilience as countries are not comfortable if a country or company is dependent on one or two geographies or if a supply chain has a potential threat of being weaponised which could hurt the entire industry.
"We have lost out on APIs (Active Pharmaceutical Ingredients) and KSMs (key starting materials) and all... but now is the time to get back by resilience," he said.
He added that now developing countries like India are competing with rich countries in attracting investments, besides goods and services.
"... look at the US, Canada, Mexico, Japan, Korea, Singapore, all of Europe, they are trying to attract investments in their geographies," he said, adding that gone are the days when only developing countries like India were attracting investments.
He also suggested that the pharma industry consider investing in other countries, as it now needs a global outlook.
Urging the industry to focus on research and development and innovation, the ministry said India's generic medicines are quite a success story.
But in the US, 90 per cent of the volume comes from generics but in terms of value, it is only 10 per cent..
"We cannot just rest our case on generics only. Focus and promote more and more R & D and innovation. Pharma should be at the forefront on this," he said, adding, "we should be at the forefront to look at new molecules and biosimilars, and we will have to offer to the world a regulatory mechanism where R&D and innovation become attractive in India".
