The call to ‘Make in India’, issued by the Prime Minister from the ramparts of the Red Fort on Independence Day, was loud and clear. It is an idea that has always resonated with many in the country.
Many people in India lack access to modern medicines. Providing quality healthcare on an equitable, accessible and affordable basis across all segments of the population is still a big task. The healthcare industry plays a critical role in the country’s economic progress, and in creating more productive communities and a healthier society. While India is the largest exporter of medicines, with a 14 per cent market share globally, a lot can be done to make it more competitive to meet the healthcare needs of people at home and abroad. The new government has identified manufacturing as a key growth lever to enhance India’s competitiveness and further increase investments. To facilitate this though, there is a need for two things — first, policies that help build a robust and competitive environment, which encourages and promotes manufacturing, research and development, and innovation; and second, the need to be seen as a global benchmark, with companies bringing innovative best practices to India.
Building a Robust and Competitive Environment
Investments will end up finding their way to places where investors can expect reasonable risk-adjusted returns, and where transparency and speed are an advantage. Ease of doing business in a country is an important factor. India, as an economy, is just beginning to realise its potential and still has room for growth. Given the focus on manufacturing, India will need to be well-positioned. We have personally seen good progress on that front as experienced while setting up our greenfield nutrition manufacturing plant in Jhagadia, Gujarat. Timely support from the local government in the form of availability of reliable power, water supply, gas, infrastructure, access to local ingredients and high quality workforce played a critical role in investment decisions.
The government must ensure that companies have a competitive advantage when investing in India. Good infrastructure, support for innovation, presence of a healthy supplier ecosystem and the ability to attract and retain good people are some of the critical factors for manufacturing to succeed in the healthcare sector. The pharmaceutical industry thrives on innovation to bring to the market new drugs and solutions that continue to meet evolving healthcare needs. A robust development and technology ecosystem is the backbone that inputs into manufacturing, finally delivering products to the consumers. While India has mastered the generics game, continued innovation to address unmet and future healthcare needs should be encouraged. Government policies should help create a favourable innovation environment and an education system that ensures availability of top talent. This will help companies — and India more broadly — become more competitive in a global environment. Equally important is a network of high quality suppliers who can match quality standards to enable localisation.
India as a Global Benchmark
Companies today need to be globally connected and locally relevant. Increasingly, facilities are part of a global manufacturing and supply chain network. It is thus essential that what a company does in India is benchmarked to the same international standards that it set for itself in every country.
An important aspect to be borne in mind when setting up facilities is to never lose focus on quality and environmental sustainability — which help establish India as a global benchmark. These are also areas that the Prime Minister emphasised with his call for ‘zero defect’.
It is equally important for companies to bring in best-in-class practices that nurture the local ecosystem. This will ensure that products manufactured in India are consistent with global standards. Newer manufacturing facilities should not only be designed for best-in-class quality and environmental sustainability, but also commit to developing local suppliers and sourcing locally.
The healthcare industry is committed to providing high-quality products that meet the health needs of local consumers. Companies are spearheading the effort to better understand and deliver on the Indian consumer’s needs for science-based, innovative products. Manufacturing is helping bring these innovations to the Indian consumer. Delivering on these fronts will truly help translate ‘Make in India’— for India and the world — into a reality and bring in future investments.
These are exciting times in India. The country has the potential to become a global manufacturing centre of excellence. The industry’s ongoing commitment represents an investment in a healthier India, and the world.
