Exit Poll 2024: Pharma, electronics manufacturing to get a boost in Modi 3.0

As exit poll results indicate a clear victory for Prime Minister Narendra Modi-led BJP government at the centre, stakeholders from sectors like pharmaceutical, medical devices and electronics manufacturing are expecting a major push for local production.

According to India Today-Axis My India exit poll, the BJP is expected to win all seats in Gujarat & Himachal Pradesh and over 60 percent and 70 percent of the Lok Sabha seats in Maharashtra and Telangana, respectively. These states are crucial manufacturing hubs for pharma and medical devices. In Uttar Pradesh and Andhra Pradesh BJP is expected to fetch over 85 percent of the seats. These, two states along with Telangana are important hubs for electronics manufacturing in the country.

Pharma to get a boost

A strong performance is expected by the BJP-led National Democratic Alliance (NDA) in key states, driven by a manifesto that emphasises manufacturing Active Pharmaceutical Ingredients (APIs) and enhancing research. Highlighting potential benefits, Raj Prakash Vyas, President-Corporate Affairs at Cadila Pharmaceuticals said, “The expansion of PLI schemes to encourage domestic manufacturing, stringent quality control measures to combat spurious drugs, and a novel approach to medicine diplomacy through government procurement of high-quality generics for global distribution.”

Vyas proposes the creation of an Innovation Task Force (ITF) dedicated to pharmaceuticals, comprising experts from various fields to accelerate the development and adoption of innovative solutions, crucial in the face of emerging threats like pandemics. "The ITF should actively promote research and development (R&D) in pharmaceuticals,” he said. Additionally, incentivising companies to invest in novel drug discovery, especially for neglected diseases would be helpful, Vyas added.

Yogesh Mudras, Managing Director at Informa Markets said that so far in 2024 the Indian pharmaceutical industry is maintaining its leadership across the entire supply chain. “It ranks third in production by volume and in terms of APIs globally”, he said.

With over 500 different APIs manufactured domestically, India contributes 57 percent of APIs to the WHO's prequalified list.

Anil Agrawal, Chairman of HRIT Group of Institutions, stressed the need for further investments in research and rural healthcare.

Tuhin A Sinha, National Spokesperson for BJP, noted, "The exit polls support PM’s vision of Viksit Bharat (developed India) and are positive for the pharmaceutical and healthcare sectors, where India has emerged as a global leader.”

India as a new electronics hub

With the BJP government at the centre and in UP, and the party gaining clout in AP and Telangana -- two other major manufacturing hubs -- the industry is expecting further push for transforming India into a major hub for electronic exports.

The government’s PLI scheme for items like mobile handsets, LEDs and components for air conditioners, among others, has ensured that many leading players like Dixon Technologies, Daikin Airconditioning, Blue Star have set up new plants to increase capacity.

“We expect the PLI scheme to be extended to other categories like smart televisions. While there is already a robust manufacturing ecosystem in place for TVs in India, it would help in turning us into an exports hub,” a top executive from a leading manufacturer told Business Today.

Avneet Singh Marwah, CEO of Superplastronics -- a Noida-based manufacturer of smart TV, AC & washing machines, -- said that policy continuity and focus on infrastructure projects will help the industry. “Govt needs to ensure that they will continue with their long terms policies with respect to manufacturing. We expect the government to expedite on completion of projects, as a lot of infrastructure projects related to industrial development are still pending,” he said.

Additionally, the reduction of goods and services tax rate on household items like TVs and ACs is the need of the hour. “After elections govt should immediately reduce GST on television and ACs from 28% to 18%,” he added.

The medical devices sector in India has a market size of $11 billion. The India analytical laboratory instruments market is projected to hit $4142.85 million by 2032 supported by the government's focus on boosting production, notably in the pharmaceutical sector.

Rajiv Nath, forum coordinator of the Association of Indian Medical Device Industry (AiMeD), echoed similar sentiments. "We anticipate government support to enhance medical device manufacturing," he said, advocating for a predictable tariff regime and fair pricing practices.