SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Govt considers setting up Rs 2,000 cr fund to promote R&D in pharma sector

04 Jul 2012 Evaluate

In its endeavor to buttress research and development (R&D) capabilities in Indian pharmaceutical sector, the government is contemplating the idea of establishing a venture capital fund with a corpus of Rs 2,000 crore. The Commerce and Industry Minister Anand Sharma, who confirmed that the government was considering such a proposal for drug industry, also opined that talks with Export-Import (Exim) Bank in this regard are underway.

The commerce minister, who held meetings with top CEOs of Pharma companies that was also attended by a committee of secretaries including the commerce secretary, Department of Industrial Policy & Promotion secretary and the Drugs Controller General of India, was evaluating the performance of pharmaceutical sector in India, which is third largest producer of pharma products by volume. The domestic pharmaceutical industry, which is growing at a rate of 15-20 per cent annually, is pegged at $20 billion and is expected to touch $75 billion by the end of this decade.

Voicing their concerns in the meeting, the industry representatives pointed at various challenges faced by them including problems in getting approvals from the Health Ministry. They also highlighted their apprehensions over takeovers of existing companies as it directly results in hike in the prices of many drugs and reduce generics (off-patent) drug production. Moreover, worries related to the non-tariff barriers imposed by the European Union, one of India’s biggest trade partners, were also underscored.

While Anand Sharma vowed to address the challenges with regards to financing of R&D, credit costs and duration faced by the sector, he also sought the industry’s opinion on the foreign direct investment (FDI) in the sector. India has allowed 100 percent FDI in new pharmaceutical projects but there still remains some uncertainty over FDI in projects that involve purchasing equity, or a controlling stake, in an existing company.

The proposal of mandatory transfer of technology by the foreign company to the acquired Indian company was also discussed in the meeting. The commerce minister discussed upon various measures to lay emphasis on commitment to quality, safety and efficacy of Indian medicines, ways to promote Brand India Pharma in important markets and the manner in which the country can attain a leadership position in exports.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×