Health & Carbon Sink

HEALTH

Health and Wellness in Delhi

Greater awareness of the profound health benefits of living a balanced lifestyle through alternative medicines, therapeutic treatments, wholesome and healthy diets, wellness foods, physical fitness, peace of mind, etc., is emerging as an important attribute for most Indians.

Alternate therapy and beauty & fitness contribute significantly to the wellness industry in India. The wellness industry, generally driven by the urban population in India, is estimated to grow by 20-30 per cent year-on-year. In 2015-16, the Indian health & wellness market was estimated at US$ 9.5 billion, and the Indian government has signaled its commitment to local investment in nutrition science and innovation, with the long-term goal of making India a global hub for wellness foods.

India is the largest supplier of ayurvedic medicines and herbs in the world, and the government has set up a dedicated department for Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) to provide impetus to these ancient healthcare systems.

  • India is the second largest exporter of ayurvedic and alternative medicine in the world
  • In 2016, India’s alternative medicine market was estimated at US$ 1.8 billion, and is expected to reach US$ 2 billion by 2021
  • The ayurved sector is fueling growth to medical tourism
  • Worldwide demand for yoga is growing exponentially, and the market is estimated to be US$ 80 billion annually.

Medical & Pharma

Medical Healthcare Industry in India

  • Healthcare has become one of India’s largest sectors both in terms of revenue and employment.
  • During 2008-22, the market is expected to record a CAGR of 16.28 per cent.
  • The total industry size is expected to touch US$ 160 billion by 2017 and US$ 372 billion by 2022.
  • Indian companies are entering into merger and acquisitions with domestic and foreign companies to drive growth and gain new markets.
  • The hospital industry in India stood at Rs 4 trillion (US$ 61.79 billion) in 2017 and is expected to increase at a Compound Annual Growth Rate (CAGR) of 16-17 per cent to reach Rs 8.6 trillion (US$ 132.84 billion) by 2023.

Pharma Industry

Introduction

India is the largest provider of generic drugs globally. Indian pharmaceutical sector industry supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in UK.
India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers who have the potential to steer the industry ahead to an even higher level. Presently over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.

Market Size

The pharmaceutical sector was valued at US$ 33 billion in 2017. The country’s pharmaceutical industry is expected to expand at a CAGR of 22.4 per cent over 2015–20 to reach US$ 55 billion. India’s pharmaceutical exports stood at US$ 17.27 billion in 2017-18. In 2018-19 these exports are expected to cross US$ 19 billion.

Indian companies received 304 Abbreviated New Drug Application (ANDA) approvals from the US Food and Drug Administration (USFDA) in 2017. The country accounts for around 30 per cent (by volume) and about 10 per cent (value) in the US$ 70-80 billion US generics market.

India’s biotechnology industry comprising bio-pharmaceuticals, bio-services, bio-agriculture, bio-industry and bioinformatics is expected grow at an average growth rate of around 30 per cent a year and reach US$ 100 billion by 2025.

Investments and Recent Developments

The Union Cabinet has given its nod for the amendment of the existing Foreign Direct Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100 per cent under the automatic route for manufacturing of medical devices subject to certain conditions.

The drugs and pharmaceuticals sector attracted cumulative FDI inflows worth US$ 15.83 billion between April 2000 and June 2018, according to data released by the Department of Industrial Policy and Promotion (DIPP).
Some of the recent developments/investments in the Indian pharmaceutical sector are as follows:

  • In August 2018, the market grew by 8.7 per cent year-on-year with sales of Rs 11,342 crore (US$ 1.69 billion).
  • During April-June 2018, pharmaceutical sector in India witnessed private equity and venture capital investments of US$ 396 million.
  • In 2017, Indian pharmaceutical sector witnessed 46 merger & acquisition (M&A) deals worth US$ 1.47 billion
  • The exports of Indian pharmaceutical industry to the US will get a boost, as branded drugs worth US$ 55 billion will become off-patent during 2017-2019.#

Government Initiatives

Some of the initiatives taken by the government to promote the pharmaceutical sector in India are as follows:

  • The National Health Protection Scheme is largest government funded healthcare programme in the world, which is expected to benefit 100 million poor families in the country by providing a cover of up to Rs 5 lakh (US$ 7,723.2) per family per year for secondary and tertiary care hospitalisation. The programme was announced in Union Budget 2018-19.
  • In March 2018, the Drug Controller General of India (DCGI) announced its plans to start a single-window facility to provide consents, approvals and other information. The move is aimed at giving a push to the Make in India initiative.
  • The Government of India is planning to set up an electronic platform to regulate online pharmacies under a new policy, in order to stop any misuse due to easy availability.
  • The Government of India unveiled ‘Pharma Vision 2020’ aimed at making India a global leader in end-to-end drug manufacture. Approval time for new facilities has been reduced to boost investments.
  • The government introduced mechanisms such as the Drug Price Control Order and the National Pharmaceutical Pricing Authority to deal with the issue of affordability and availability of medicines.

Road Ahead

Medicine spending in India is expected to increase at 9-12 per cent CAGR between 2018-22 to US$ 26-30 billion, driven by increasing consumer spending, rapid urbanization, and raising healthcare insurance among others.

Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are on the rise.

The Indian government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programs, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.

Exchange Rate Used: INR 1 = US$ 0.0149 as on June 29, 2018
References: Consolidated FDI Policy, Department of Industrial Policy & Promotion (DIPP), Press Information Bureau (PIB), Media Reports, Pharmaceuticals Export Promotion Council, AIOCD-AWACS, IQVIA

Carbon Sink

Afforestation

It is a way of changing a non-forest area or land into a forest. Afforestation is not only a part of sustainable development but also cause ecological balances. Due to increase in infrastructure, industries, development of technology, large forest area has been cut off which reduces the carbon sinks and cause global warming. Hence in order to fight the issue of global warming, soil erosion, pollution and creating ecological balance and maintenance of bio-diversity, afforestation is required.
India ranks 10th in the list of most forested nations in the world with 76.87 million ha of forest and tree cover & India’s forest and tree cover accounts for about 24% of the total geographical area of the country by 2013. India has been successful in improving carbon stock in its forest by about 5% from 6,621.5 million tons in 2005 to 6,941 million tones in 2013. The forests are playing a significant role in carbon storage and sequestration has increased their importance manifold and brought them to the centre-stage of climate change mitigation strategies. Forests, like other ecosystems, are affected by climate change. The impacts due to climate change may be negative in some areas, and positive in others. However, forests also influence climate and the climate change process mainly by effecting the changes in the quantum of carbon dioxide in the atmosphere. They absorb CO2 from atmosphere, and store carbon in wood, leaves, litter, roots and soil by acting as “carbon sinks”. Carbon is released back into the atmosphere when forests are cleared or burned. Forests by acting as sinks are considered to moderate the global climate.

Sustainable Forestry Management (SFM)

It expatiate the deforestation and forest degradation while increasing the direct benefits from it to population and environment by conserving and maintaining the forest ecosystem. SFM is a management regime that integrates and balances social, economic, ecological, cultural and spiritual need needs of present and future generation (United Nation, 1992). For managing forest sustainably proper forest policies, legislation, institutional framework, incentives and technical as well as huge skilled manpower is required. SFM not only ensure the increase in forest products like wood, fire-wood, fruits etc. but also reduces the threat from fires, pests and natural disaster. It also included agroforestry as well as tree based oil and subsequently increase the natural carbon capture and storage system. SFM also contributed the multiple water ecosystem services. It has been estimated forested catchment supply around 75% of fresh water. In India 701.673 Sq. Km is under forest which include 85,904 Sq. Km Very Dense Forest, 315,374 Sq. Km Moderate Dense Forest and 300,395 Sq. Km Open Forest with total carbon stock of 6,941 million tonnes (2013). The National Afforestation and Eco-Development Board (NAEB), set up by MoEFCC in August 1992, which is responsible for promoting afforestation ,tree planting, ecological restoration and eco-development activities in the country, with special attention to the degraded forest areas and lands adjoining the forest areas, national parks, sanctuaries and other protected areas as well as the ecologically fragile areas like the Western Himalayas, Aravallis, Western Ghats, etc. Other initiatives of Government of India are (i) The Forest (Conversation) Act, 1980, (ii) National Forest Policy, 1988, (iii) JFM, NFC, CAMPA