India Proposes $78 Million Fund to Promote Drug Industry Growth
India’s government has announced plans for a $78 million venture capital fund to offer loans to drug companies that are building or expanding manufacturing facilities.
The fund would channel public resources into drug design, discovery and development, according to a new report issued by the Department of Pharmaceuticals.
The department may also increase funding support to early-stage entrepreneurs in the form of seed capital or by facilitating funding with other financial institutions, the report says.
In addition, the task force is proposing offering drugmakers soft loans or interest subsidies to upgrade manufacturing facilities to meet World Health Organization good manufacturing practices.
At best, the proposal is a token of the government’s intention to promote drug manufacturing in India, says D.G. Shah, secretary general of the Indian Pharmaceutical Alliance.
The $78 million amount is too small to make any real impact, since a U.S. FDA-approvable finished dosage plant typically costs above $25 million, he says.
The task force was created to implement the government’s “Make in India” campaign, which mandates boosting the indigenous drug manufacturing sector in the country.
Read the report here: www.fdanews.com/6-15-India-Report.pdf. — Jonathon Shacat