Even as the pharma sector is still grappling with the uncertainty around the US tariffs, the department of pharmaceuticals (DoP) is planning to get a study done to overhaul the logistics value chain of the pharma and medical devices sector. In a notification, DoP said that an agency to be designated will conduct a study to develop a comprehensive logistics plan for the pharma and medical devices sector in India.
“This plan will assess existing infrastructure facilities, logistics practices, policies, and regulatory frameworks. The study will additionally recommend interventions by the DoP and other line ministries to support the future growth of the pharma and med-tech industry, aiming to become a global leader,” the notification said.
Further, the study will identify the entire pharma and medical devices logistics ecosystem – from raw material procurement to last-mile delivery. It will document the current logistics costs, break down highest cost components, and operational bottlenecks.
“The study will analyse the flow of goods at international, regional, and national levels, including export and import (EXIM) data, with a focus on the trade of pharma and medical devices through seaports and airports. It will also review existing policies, regulations, approvals and processes impacting logistics in these sectors,” the notification said.
Experts said that both pharma and medical devices sectors have huge potential to expand globally. “If we are able to get the right kind of government policy support that is focused on promoting domestic manufacturing, diversifying exports to countries other than US, improving trade infrastructure and reducing inward freight haulage costs, which are currently very high,” said Rajiv Nath, forum coordinator, Association of Indian Medical Device Industry (AiMeD).
Under the terms, the agency is also be required to provide policy direction and infrastructure development plans. “The agency will have to formulate actionable recommendations addressing the gaps identified by working with ministry of railways, ministry of road transport and highways, ministry of ports, shipping and waterways, ministry of civil aviation, central board of indirect taxes and customs, central drugs standard control organisation, etc,” it said.
The notification seeks expression of interest (EoI) from parties who are required to submit their proposals by May 2.