Updated on 28 June 2012
Governments in Asia are recognizing the potential of the sector and providing support to draw investments
Countries in Asia are pushing policies to attract investments. India has taken many steps to encourage investments and tweaked regulations to meet international standards. Taiwan and China too are investing in bioscience and healthcare to boost industry growth. Recently, Malaysia's BioNexus program received a boost with Eppendorf announcing lab support for companies under the program. (Read Hot investment destinations in Asia)
The Indian life sciences industry, which is the generics hub of Asia, is receiving a lot of support from its government. The country has taken significant initiatives in 2011. Supporting the companies to promote R&D of novel drugs, the government announced extension of a 200 percent weighted tax deduction by companies on R&D expenses for five more years. The government also set up the $900 million ‘India Opportunities Venture Fund' with the Small Industries Development Bank of India (SIDBI) for micro, small and medium enterprises (MSME). (Read India continues to attract FDI in pharma)
According to market analyzer, Corporate Catalyst India, the Indian government plans to set up a $639.56 million venture capital fund to give a boost to drug discovery and strengthen the pharma infrastructure in the country.
The Department of Industrial Policy and Promotion (DIPP) recognizes India's immense potential in the biotechnology sphere, and wants India to become a ‘biotechnology hub' and a high potential investment destination. India is self reliant in technology and boasts of export promotion possibilities in Asia and the rest of the world. India received an investment of $258 million (Rs12,000 crore) during 2007-12.
India has decided to continue with the 100 percent foreign direct investment (FDI) regime in the pharmaceuticals sector. Pharmaceuticals Export Promotion Council (PEPC) marked a new trend of investments from foreign players. It eliminated the need for overseas investors to get a no-objection from their joint venture partner before venturing out on their own or roping in another local firm in India. PEPC believed that this measure is set to promote the competitiveness of India market as an investment destination and be instrumental in attracting higher levels of FDI and technology inflows into the country.