India's Pharma Must Shift from Low-Cost to Global Quality Leader: Commerce Secy

Speaking at the 'Chintan Shivir - Scaling Up Pharma Exports' event organised by the Pharmaceuticals Export Promotion Council of India (Pharmexcil), Agrawal said India should move beyond its image as only a low-cost drug manufacturer and focus on building global trust in the quality of its medicines.

"Health care is also about quality preparation; it is also about how we build in quality and credibility," he said.

He stressed that India should aim to become globally recognised not just for affordable medicines but also for consistent quality.

"So, can we reposition ourselves as the quality producers in the world, which are also cost-effective, not the cost-effective producer in the world which also delivers quality," Agrawal said, adding that such a shift in perception would strengthen the country's long-term position in the global pharmaceutical market.

Highlighting the importance of trust in healthcare products, he said building a reputation for quality would significantly strengthen the sector's resilience.

"Once your name is equated with quality in all senses, I tell you your resilience goes multiple notches up, because quality is something in health care which will always remain important," he said.

Agrawal also pointed out that in the long run, quality will always take precedence over cost in healthcare decisions.

"When there is a debate in cost and quality, I tell you it will be the quality which will always take place," he added.

The Commerce Secretary further said the industry must keep pace with emerging trends in pharmaceuticals, including biologics and biosimilars, and ensure India remains at the forefront of innovation.

"If the drug industry or pharmaceutical industry is moving, now we are looking at biologics, we are looking at biosimilars... how we be on the innovation curve," he said.

Agrawal noted that India's pharmaceutical sector has already reached a significant scale, with the industry valued at around USD 60 billion, and must now aim to lead global developments rather than simply follow them.

"We are a 60 billion dollar industry in terms of value, in terms of volume we are much bigger... we need to now be at the forefront of the new developments in the space rather than being just a follower," he said.

He also highlighted geopolitical shifts and the global push to diversify supply chains, saying India must strengthen its innovation ecosystem to remain a key player in global pharmaceutical manufacturing.

"Globally, the geopolitics will always say diversify... why depend only on India and that is also very natural debate," he said.

Agrawal added that India should participate more actively in the innovation ecosystem, including the development of new drugs and patents.

"So value will come to the part of the innovation trajectory... we will keep on working around patents for expired patents to create the best generics in the world, but maybe it can be the part of the new patents that will come in this system," he said.

He also called for regular discussions among industry stakeholders to address challenges and develop new ideas that could strengthen the sector.

"We need to sit with the right stakeholders and brainstorm these issues very candidly... you never know out of these discussions you will come or reach an idea which will be worth billions of dollars," he said.

Agrawal said the government will continue working closely with the industry to strengthen the sector's global competitiveness.

"As commerce secretary, I will try to work with the industry, with the pharma department to see that we strengthen industry... both in terms of value proposition, quality proposition and the overall resilience of supply chains," he said.

- ANI