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The government on Tuesday said it is considering forming a venture capital fund of Rs 2,000 crore (Rs 20 billion) to promote research and development (R&D) in the pharmaceutical sector.
"We are considering a proposal of venture capital fund of Rs 2,000 crore for drug industry. We are talking with Exim Bank for this," Commerce and Industry Minister Anand Sharma said.
Sharma was reviewing the pharma sector with industry representatives and government secretaries.
In the meeting, the pharma industry representatives raised issues like problems in getting approvals from the Health Ministry.
Sharma said all the concerns of the industry will be discussed by a committee of secretaries which will include commerce secretary, DIPP secretary and DCGI.
"We are mindful of the challenges of the sector with regards to financing of R&D, credit costs and duration," Sharma added.
India is the third largest producer of pharma products by volume and the industry is growing at a rate of 15-20 per cent annually.
The domestic pharmaceutical industry is pegged at USD 20 billion and is expected to touch USD 75 billion by the end of this decade.
India's pharma exports stood at USD 13 billion last year. The country produces a fifth of the generic medicines of the world.
The country's overall exports declined by 4.16 per cent in May.