Government announces its plan to set up a Rs. 2,000 crore fund for the pharma industry
New Delhi, July 4, 2012: The government is planning to set up a venture capital fund with a corpus of over Rs. 2,000 crore ($360.8 million) win order to strengthen the R&D capability of the domestic pharmaceutical sector. As per the announcement from Anand Sharma, the Commerce, Industry and Textiles minister, a panel of secretaries would be set up in order to devise a strategy for the pharma industry and to address the challenges.
The minister also said that the progress of the panel would be reviewed after a period of three months and the ministry is currently is in talks with EXIM Bank to take it forward.
The Commerce, Industry and Trade minister assured the industry leaders that the government will discuss the issue of non-tariff barriers being put up by the US and the EU against the Indian pharma industry at different levels. In addition, the minister also said that there are significant opportunities for growth available in markets like Russia, Africa and South America for the domestic pharma majors.
It is expected that this corpus will be able to boost the R&D capability of the Indian pharma industry and will support the long-term growth of the domestic pharma majors.