Besides representation from the finance and chemicals and fertilizers ministries, the group will have officials from leading pharma firms and banks including the State Bank of India.
“Sector specific issues of pharmaceuticals companies will be taken up by this group, including credit requirement, faster loan clearances and streamlining of procedures,” said an official aware of the matter.
The pharma industry’s demands include simplification of loan application, collateral-free loans, inclusion of pharma industry in micro, small and medium enterprises (MSME) segment and need for schemes such as Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for pharma and ancillary units. “Some of these suggestions are being deliberated on, including innovative credit products like funds against IPR,” said the official.
The government has identified pharma as a champion sector and has approved a production-linked incentive (PLI) scheme worth ₹15,000 crore for high value products in pharmaceuticals. There is a separate scheme for setting up parks for bulk drugs. The pharma sector accounts for about 1.72% of the country’s GDP. India’s pharma industry is the world’s third largest by volume and 14th largest in terms of value.
A senior bank executive said the government is looking at various sectors to address issues related to credit and to push lending in the productive sectors of the economy.