India is set to play a significant role in the manufacture and global supply chain of Covid vaccine and other pharmaceutical products, according to CII Southern region Chairman Satish Reddy.
“India is already a vaccine hub of the world producing about 60 per cent of global vaccines and we expect it to play a major role in the Covid vaccine as well. Several companies including Serum Institute of India, Bharat Biotech and Biological Evans Limited have formed strategic tie-ups for Covid vaccine,” Reddy, said.
Interacting over a video conference, Reddy, who is also the Chairman of Pharma major Dr Reddy’s Laboratories, said, “There has been growing focus on domestic manufacture and one area we see good momentum is strengthening the production of Active Pharma Ingredients (APIs). While it is difficult to predict if we can displace China as a hub for API manufacture, if we strengthen our manufacturing base, we would be able to play a major role in the manufacture and global supply chain.”
The Covid pandemic has hit the country’s economy hard. The government has announced a series of measures to revive the economy and attract new investments into the country with various packages and incentives.
Talking about Prime Minister Narendra Modi’s Independence Day address and the accent on Atmanirbhar Bharat, with focus on making in India for India and for other markets, Reddy said the country’s and the Southern region focus has been on strengthening the domestic manufacturing sector. The Southern States have either announced or are in the process of announcing new industrial and sectoral policies, which will play a role in attracting companies by ensuring ease of doing business.
“While sectors such as hospitality, aviation and tourism have been adversely affected and may take couple of years to get back to normalcy, there has been a positive momentum in the life sciences electronic manufacturing and other sectors in the country,” he explained.
The CII has been focusing on inclusive growth by bridging the rural and urban divide while encouraging the Micro Small and Medium Enterprises, which form the backbone of the country and provide huge opportunity for employment generation. Of the ₹3 lakh-crore announced for the sector, about ₹1 lakh-crore has already been disbursed, he said.
The US and China account for 40 per cent of the Global GDP. The focus is on developing and attracting investments in the manufacturing sector and increase its contribution to the economy from about 16 per cent to 25 per cent of the economy with focused interventions by the government.
“If the GST numbers are taken into account, we see there is a significant dip in numbers and there has been de-growth across sectors. But the good thing is, the situation is improving and the demand has come back by up to 75 per cent in some sectors, is more in others, and significantly down in some other sectors.
“It is hoped that by the end of the third quarter (December 2020), the growth will be back to about 95 per cent,” he said.