MSMEs In Pharmaceutical Sector
The pharma industry in India is highly innovative and entrepreneurial. Along with its roots in the sector, the Geo-economic healthcare landscape has been significantly altered by new startups in the traditional space. Thus more contributions need to be made to bring forward an overall larger set of solutions through a focused research and development process. For this, MSMEs in the pharmaceutical sector require funding to grow.
With factors such as a product pipeline, access to a specialized talent pool, and a large pool of patients to add to clinical needs, the pharma ecosystem is poised to meet multifaceted healthcare needs. Thus government policies along with various schemes should be geared towards accelerating such innovations and ground-level growth to provide problem-solving solutions at the base level of the society’s pyramid. And further reducing their dependence on obsolete processes and increasing access to affordable health care. Thus, in these circumstances, capital funding should never be a concern to gear up the MSMEs in the pharmaceutical sector.
Government schemes for MSMEs in the pharmaceutical sector
The pharma industry is a very important sector of the economy. Its importance has raised significantly since the covid 19 pandemic. It is difficult to run the industry without sufficient funding. Thus strengthening MSMEs in the pharmaceutical sector has become the need of the hour. Keeping this in mind government of India launched 3 schemes to make the pharma industry Atma nirbhar, additional resilient and future-ready. Those are as below –
- PTUAS Scheme
- API-CF Scheme
- PMPDS Scheme
The scheme provides for credit-linked facility capital and interest for subsidy within the pharma sector. The objectives of the schemes launched under the banner Strengthening Pharmaceuticals Industry include
- Technology up-gradation
- Setting up common research centers
- Operating effluent treatment plants in clusters for pharmaceutical MSMEs.
- Support of up to Rs 20 crore each for the common facility.
SIDBI is going to be the project advisor for implementing these schemes.
1. PTUAS - Pharmaceutical Technology Upgradation Assistance Scheme
This scheme would facilitate pharmaceutical MSMEs with a well-tried track record to upgrade their technology. The scheme has provisions for a capital grant of 10 percent on loans up to a maximum limit of Rs 10 cr. And with a minimum compensation amount of 3 years or interest subvention of up to five percent (6 percent in case of units closely held by SC/ST) on a reducing balance basis.
2. API-CF - Assistance to Pharma Industries for Common Facilities Scheme
Helping pharma Industries with the Common Facilities scheme (API-CF) would strengthen the prevailing pharmaceutical clusters’ capability for sustained growth. It provides for the help of up to seventy percent of the approved project value of Rs 20 crore, whichever is a smaller amount.
3. PMPDS - Pharmaceutical and Medical Devices Promotion and Development Scheme
The pharmaceutical and Medical Devices Promotion and Development scheme (PMPDS) would involve the preparation of study reports on topics of importance for the Indian pharma and medical device industry. The scheme is geared toward making information about the pharma and medical device sectors. So the industry can keep upgrading to cater to evolving necessities across international markets.
At a conclusion
The pharma industry is one of the most important sectors of the business economy. Due to this, a lot of emphases is being laid on the working of MSMEs in the pharmaceutical sector. It is also a growing industry as many more pharmaceutical companies are looking to expand their business. In order to expand, the industry requires raising funds for the pharma businesses. Terkar Capital caters to the required cash flow for the growth of MSMEs in the pharmaceutical sector. So, reach out to Terkar Capital for financial facility arrangements.