POTENTIAL OUTCOMES OF THE DRAFT POLICY
a. Emphasis on improving Quality and GMP will increase cost of production.
b. The phasing out of loan licensing and contract manufacturing will make installed capacities redundant and create unemployment.
c. The investment for creating new capacities for in-house production will further increase product cost.
d. Over emphasis on affordability will put pressure on pricing.
e. Thus, policy prescription would lead to higher production costs and lower prices. f. This may impact competitiveness of the industry and in turn affect its export led growth.
g. Certain observations in the Policy about the quality of medicines, GMP compliance, the inadequate oversight of the drug regulatory authorities, etc. may put off the regulators, doctors and patients from using medicines made in India and provide a field day to competitors to hut India’s exports. This would further slowdown exports.
h. The benefit of scale, currently enjoyed by the Indian patients, from huge export volumes may slowly disappear and push up the costs and prices of medicines.
i. The latest data of domestic sales and exports speak for themselves.