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BUSINESS EYE JANUARY 27, 2023 | The Indian Eye 26

From high-volume to high-value: How

India is eyeing global arena of economy

India will be a $3.7 trillion economy in 2023, maintaining its lead over the UK as
the fifth largest economy of the world

OUR BUREAU to support innovation and cross-sec-
toral research as a strong institutional
Davos/New Delhi
mechanism for sustainable growth in
nion Health Minister Man- the research and development and
sukh Mandaviya on Wednes- innovation sector.
Uday urged pharma and med- He also informed about the gov-
tech sectors to move out of their ernment’s support to the Medical De-
comfort zone and adopt innovation vices sector by a production-linked
as a driving feature of their busi- incentive scheme and underlined
ness strategies and said that India that the bio-pharmaceuticals sector
is poised to take on the global are- has delivered a 5-year Compound
na and move from high-volume to Annual Growth Rate (CAGR) of 50
high-value products. per cent.
Addressing the roundtable dis- Meanwhile, a Reserve Bank ar-
cussion on “Opportunities in R&D ticle said on Thursday that India will
and Innovation in Life Sciences at be a $3.7 trillion economy in 2023,
the World Economic Forum in Davos maintaining its lead over the UK as
today, Mandaviya said, “The Govern- the fifth largest economy of the world.
ment of India, under Prime Minister Recent data arrivals indicate that the
Narendra Modi’s leadership is com- first milestone of monetary policy is
mitted to promoting Indian Life Sci- being passed – bringing inflation into
ences as a globally competitive sector the tolerance band, said the article ti-
to ensure the availability, accessibility, tled ‘State of the Economy’ published
and affordability of drugs and med- in the January bulletin of the RBI.
ical devices in domestic and global The objective during 2023 is
markets”. to tether inflation therein so that it
According to the Ministry of aligns with the target by 2024 – the
Health and Family Welfare, the pur- second milestone, the said the arti-
pose of the meeting was to establish an cle authored by a team lead by RBI
affordable and accessible life sciences Deputy Governor Michael Debabra-
ecosystem, identify the gaps in the life ta Patra.
sciences industry, extend opportuni- “At current prices and exchange
ties for knowledge exchange and en- rates, therefore, India will be a $3.7
couragement of innovation in R&D trillion economy in 2023, maintaining
and identify investment opportuni- its lead over the UK as the fifth larg-
ties to create a robust R&D and inno- est economy of the world,” it said.
vation ecosystem to increase the com- Union Minister for Health and Family Welfare Mansukh Mandaviya meets Ferring Pharma- According to the IMF’s calcu-
petitiveness of life sciences industry. ceuticals, Vice President, Christina Ostberg Lloyd on the sidelines of World Economic Forum lations, India will move into fourth
Speaking on the occasion, Man- place in 2025 and into the third place
daviya said that a large share of glob- Annual Meeting 2023, Davos, on Tuesday (ANI) in 2027 as a $5.4 trillion economy.
al value capture (nearly 40 per cent The article said a slowdown in
of a market of 6.65 trillion USD) in urged the Pharma-MedTech sectors tem for innovation in this sector to growth with possibilities of recession
the life sciences sector lies in innova- to move out of their comfort zone become a leader in drug discovery in large swathes of the global econo-
tion-based products. and adopt innovation as a driving fea- and innovative medical devices,” the my has become the baseline assess-
“Promoting drug discovery and ture of their business strategies. Minister said. ment even as inflation may average
innovation will unlock this value He stated that “India is now Mandaviya said the govern- well above targets.
and will also enhance the industry’s poised to take on the global are- ment is strengthening the regulatory Emerging markets are appear-
contribution to the Indian economy na and move from high-volume to framework to facilitate innovation ing more resilient than in the year
(additional USD 10-12 Bn in exports high-value products”. and research in product development. gone by, but their biggest risks in
every year) and create a large pool of “India is taking concerted and Indian regulators are now working to- 2023 stem from US monetary policy
jobs to enhance India’s differentia- coordinated efforts on R&D and wards establishing global harmoniza- and the US dollar.
tion vis a vis other developing econ- Innovation in the Pharma-MedTech tion in this regard, with modifications “In India, the softening of com-
omy,” he said. Sector to indigenously develop cut- in the regulatory provisions. modity prices and other costs amidst
In order to capture these oppor- ting-edge products and technologies He said that another focus area strong revenues appears to have boost-
tunities, the Union Health Minister and promoting an enabling ecosys- is creating a facilitatory ecosystem ed corporate performance,” it said.

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