In a significant move, the Department of Pharmaceuticals (DoP) has launched a comprehensive initiative to overhaul the logistics value chain. This strategic effort will focus on streamlining supply chain operations in the pharmaceutical and medical technology (MedTech) sectors across India.
Aiming to Strengthen India’s Global Position in Healthcare
With this initiative, the government aims to position India as a global powerhouse in pharma and MedTech manufacturing and exports. The study will assess existing infrastructure, logistics practices, and regulatory frameworks to identify critical bottlenecks and operational inefficiencies.
Moreover, the study will help design a roadmap for improving logistics performance at national and international levels. Authorities believe this effort will significantly boost the ease of doing business in healthcare manufacturing.
Mapping the End-to-End Logistics Ecosystem
The planned study will map the entire logistics ecosystem. Covering everything from raw material procurement to last-mile delivery of finished products. It will analyze logistics costs, evaluate storage and transportation systems, and assess cold chain infrastructure and distribution networks.
Importantly, the assessment will include the movement of goods across seaports, airports, and land routes to understand trade-related constraints. The goal remains to provide a data-driven foundation for strategic policy and infrastructure recommendations.
Cross-Ministry Collaboration to Ensure Effective Implementation
To ensure the study’s success, the agency appointed by the DoP will collaborate with multiple central ministries and regulatory authorities. These include the Ministry of Railways, Ministry of Road Transport and Highways, Ministry of Ports. Shipping and Waterways, and the Ministry of Civil Aviation.
Additionally. Coordination with the Central Drugs Standard Control Organisation (CDSCO) and state drug regulators will help in identifying regulatory and compliance challenges. Through this integrated approach, the government seeks to remove silos and promote seamless coordination across departments.
Focus on Actionable Recommendations and Long-Term Impact
The core objective of the logistics value chain study is to generate actionable recommendations that can support sectoral growth and resilience. The agency will identify specific gaps and propose solutions tailored to meet the future demands of global supply chains.
Furthermore, authorities aim to enhance India’s competitiveness by ensuring time-bound and cost-efficient movement of pharmaceutical and medical device products.
Complementing the PRIP Scheme for Research and Innovation
This logistics overhaul aligns with the government’s recently launched scheme – the Promotion of Research and Innovation in Pharma MedTech (PRIP). The ₹5,000 crore scheme aims to accelerate research and innovation in the pharmaceutical and medical technology sectors.
Under the PRIP scheme, the government will establish Centers of Excellence, promote academia-industry collaboration, and fund innovation in priority areas such as drug discovery and digital health devices.
Together, the logistics revamp and the PRIP scheme will provide the necessary infrastructure and support to fuel industry growth and innovation.
Reducing Import Dependency and Driving Domestic Manufacturing
At the same time, the MedTech industry is focusing on reducing its import dependency from 75% to 50% over the next five years. To meet this ambitious goal, stakeholders are emphasizing the need to develop robust domestic manufacturing capabilities supported by efficient logistics networks.
Additionally, the industry expects the MedTech segment to grow to $50 billion, making it a key contributor to India’s economic growth and healthcare security.
Towards a Resilient and Future-Ready Supply Chain
In conclusion, the Department of Pharmaceuticals has taken a bold step by addressing the foundational challenges within the logistics value chain. With a focus on efficiency, innovation, and inter-ministerial collaboration, India is preparing its pharma and MedTech sectors for a competitive global future.
If implemented effectively, this initiative will transform India’s healthcare logistics landscape, making it more agile, resilient, and globally relevant in the coming years.
