Supported by a thriving ecosystem, India has risen as one of the leading global lifesciences hubs in the last few years. This ascent is marked by the COVID-19 pandemic as the turning point that brought the pharmaceutical, biotech, and MedTech sectors into the limelight. The government of India also took note and launched initiatives to strengthen the lifesciences ecosystem in India, especially in light of Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-JAY) and Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana (PMBJP).
The roadmap to boost India’s biotechnology, pharma, and MedTech industries included improving the rules and guidelines for developing new products as per international standards, incentivising investments in research and development (R&D) through financial assistance and tax breaks, building a supportive environment to encourage cross-sectoral research and developing advanced technologies, and consistently backing the medical devices industry through the production-linked incentives.
These strategies are expected to attract more domestic and international firms to invest in biotechnology and MedTech industries, fueling the demand for lifesciences real estate facilities. For example, the production-linked incentives scheme for the medical devices, drug intermediates, and active pharmaceutical ingredients industries has contributed to the demand for industrial parks and clusters, catalysing growth in both the industrial real estate market and ancillary services.
These developments have underscored the growing need for life sciences R&D real estate in India, and the prospects are favourable. As per Savills India’s report spanning the present decade (2021-2030), India could generate demand for approximately 96 million sq ft of lifesciences R&D real estate, with market value estimates between $16 billion (Rs 1,200 billion) and $34 billion (Rs 2,550 billion).
