Ladies and Gentlemen,
1. At the outset, I am pleased to here at the inauguration of India Pharma 2017 being organized by Ministry of Chemicals and Fertilizers, in association with Federation of Indian Chambers of Commerce of Industry and other partners.
2. I congratulate all the organizers for their initiative to hold the second edition of this flagship event, here in Bengaluru, the Technology Capital of India.
3. As you are aware, this event is planned in the backdrop of Make in India initiative launched by the Union Government. ‘Make in India’ drive will certainly set the country on the path towards self-reliance in the area of manufacturing.
4. I need not mention here that, Karnataka has been pioneer in this initiative and committed to reap the best advantage of this movement for further growth of industrial sector in the State.
5. The pharmaceutical industry has increased life span and wellness among entire living masses. The industry is growing exponentially over the last few years. As per World Health Organization, the global pharmaceuticals market is worth US $ 300 Billion a year, a figure expected to rise to US $ 400 billion within three years.
6. The 10 largest drugs companies control over one-third of this market. Companies currently spend one-third of all sales revenue on marketing their products – roughly twice what they spend on Research and Development.
7. The domestic Pharma Industry has recently achieved some historic milestones through a leadership position and global presence as a world class cost effective generic drugs’ manufacturer of AIDS medicines.
8. The Indian Pharmaceutical companies maintain highest standards in Purity, Stability and International Safety, Health and Environmental protection in production and supply of bulk drugs.
9. This speaks of the high quality standards maintained by a large number of Indian Pharma companies to face stringent assessment by various regulatory authorities.
10. The Indian Pharma industry is expected to grow at a Compound Annual Growth Rate ( C A G R ) of 15 per cent to 20 per cent and achieve a turnover of US$ 50 Billion by 2020.
11. The Active Pharmaceutical Ingredients (API) market is expanding at a rapid pace and formulation manufacturers have vast opportunities due to the upcoming patent cliff.
12. A world Bank estimation reveals that India typically spends only ONE PER CENT of its overall Gross Domestic Product on public health which is only one fifth of total health expenditure and more than 95 per cent of private health expenditure is out of pocket expenditure.
13. With a traditionally very low investment on health care by the Government, the onus is on private sector to expand and capitalize on the market.
14. Enhancing access to health care would critically depend on three basic factors, namely – domestic production capacity, market structure of the domestic production, import intensity and Government regulation over the industry.
15. Medical devise sector is emerging as the most prominent industry around the world. It is considered that economic growth leading the higher disposable incomes, increased public spending in health sector and enhanced penetration of health insurance are the drivers for growth in medical device industry.
16. A rise in the number of hospitals and the increased requirement for healthcare facilities creates a need for sophisticated devices and equipment, which can provide accurate treatment to individuals. Developing countries like India have much to gain from effective use of advanced medical technology.
17. It is to be noted that, 75 per cent of India’s total demand for medical devices is currently met by imports, with nearly 30 per cent of it being supplied by the United States alone.
18. There is a mismatch between the design of certain technologies being imported and realities of clinical conditions and healthcare infrastructure existing in India.
19. Karnataka is one of the growing bio-pharmaceutical States in the country, currently ranks fifth in Pharma exports and contributes 10 per cent to the Indian Pharma export revenue.
20. Presently, there are more than 230 pharma and bio-tech companies are housed in the State. A host of reputed and globally known pharmaceutical companies functioning in the State have brought name and fame to Karnataka.
21. Karnataka exports 40 per cent of its pharma produce. Presence of exclusive Pharma Special Economic Zone, Pharma Industrial Areas and Research and Development Centres provide required impetus for further growth of Pharma sector. Karnataka generates EIGHT per cent of the Country’s pharmaceutical revenue. Karnataka is a largest bio-technology hub in India having 194 out of 340 bio-tech companies.
22. The State has recognized the necessity to give impetus for promotion of Pharmaceutical Sector in Karnataka in a holistic way. Realizing this need, the State has brought out Karnataka Pharmaceutical Policy.
23. This policy is envisioned to make Karnataka a vibrant pharmaceutical manufacturing hub by leveraging the strengths of knowledge based institutions and skilled human resource of the State.
24. The ultimate objective of the policy is to provide innovative, quality and affordable health care solutions to the masses. This Policy proposes to constitute Karnataka Pharmaceutical Development Cell to serve as a dedicated single point contact for this sector.
25. In order to give further thrust on promotion of medical devices manufacturing enterprises, the our Government has evolved host of strategies, as part of the New Industrial Policy 2014-19.
26. The State is proposing to constitute separate vision groups for Pharmaceutical Sector and medical device segment to guide on further promotion of these two promising sectors. These vision groups would be headed by the experts in respective sectors.
27. Karnataka is one of India’s most progressive States possessing a vibrant and productive industrial eco system. Be it industry, research or academics, Karnataka has been a pioneer State in every aspect which has propelled industrialization and economic progress.
28. Karnataka has always been an industry friendly State and will continue to be so in future. Our Government has been striving to make Karnataka a most preferred investment destination both for domestic and overseas investors.
29. We are keen to attract more and more investments to the State. Due to the progressive policy and pro-active governance in Karnataka, we could attract investment intensions of about Rs. 1.50 lakh crore during January-November 2016, standing as No. ONE State in India.
30. While we are keen to attract investments at the same time, more committed to see that all these investment intensions are materialized within the specified time. For this, State has streamlined procedures for investors through its single window mechanism for doing the business with ease.
31. The present Government in Karnataka is committed to create a conducive environment for investors enabling them to implement their projects within the time frame.
32. The State which is known for extending the red carpet for industries. We are looking to build on that legacy and welcome both national and international companies to set up their base in the State.
33. Ever since we assumed office it has been our endeavour to ease the doing of business. As part of ushering in the ease of doing business, Karnataka has initiated a host of initiatives and reforms to speed-up industry led growth in the State.
34. As the Chief Minister of the State, my energy and focus have been devoted to ensure the economic prosperity of the State including the lives of each person residing here.
35. I have always been a big supporter for the industry and will continue to be so. I extend to you all my best wishes and hope you all will make the best use of the opportunity presented by this mega events.
36. To conclude, I thank the organizers for providing this opportunity and I wish the event a grand success.
Thank you one and all !