Future-proofing pharma manufacturing: How companies and associations are upskilling to meet new challenges
Sumit Kumar, Chief Strategy Officer, TeamLease Degree Apprenticeship, highlights the importance of embracing apprenticeships, upskilling, and reskilling as core talent development strategies to address the skills gap and lay the foundation for long-term industry leadership
India’s pharmaceutical sector is rapidly emerging as the global epicentre of medicinal production, earning the moniker “Pharmacy of the World.” This burgeoning industry is experiencing a remarkable growth trajectory, positioning itself as a cornerstone of India’s economic vitality. As a pivotal driver of the nation’s fiscal health, the pharmaceutical manufacturing sector stands at the cusp of a transformative era, poised to pioneer groundbreaking innovations and demonstrate unparalleled adaptability in the face of evolving global healthcare needs. Technological advancements, including artificial intelligence, machine learning in drug discovery, advanced bioinformatics, and state-of-the-art manufacturing processes, propel the sector forward as it cements its status as a global leader.
Ranked third in pharmaceutical production by volume, India’s pharmaceutical industry, projected to reach $130 billion by 2030, has grown into a robust ecosystem. The industry’s extensive network includes approximately 3,000-3,500 drug companies and around 10,000-11,000 manufacturing units, highlighting its significant global impact. India is home to an estimated 400-600 Active Pharmaceutical Ingredient (API) producers, contributing roughly 8-10 per cent to the global API market. As the world’s largest supplier of generic medicines, India holds a commanding share, supplying 20-25 per cent of global generics by volume and fulfilling more than half of the world’s vaccine requirements. However, to sustain and further elevate this leading position, the availability of skilled talent is more crucial than ever. The sector’s rapid growth has underscored the urgent need for a steady pipeline of highly trained professionals capable of navigating the complexities of modern pharmaceutical manufacturing. As the industry reaches new heights, it becomes increasingly clear that complacency is not an option, and the demand for robust skilling and upskilling initiatives is paramount. Schemes and programmes like Make in India, the Production Linked Incentive (PLI) Scheme, and the Skill India Mission play a pivotal role in developing a workforce that is competent, agile, and ready to meet the sector’s advancing demands.
Schemes accelerating pharmaceutical industry development
India’s pharmaceutical sector is supported by an array of government schemes aimed at enhancing its growth and sustainability. The Ministry’s “Strengthening of Pharmaceutical Industry (SPI)” scheme, with a substantial financial outlay of ₹500 crore ($ 60.9 million), provides crucial support to existing pharmaceutical clusters and MSMEs across the country. This initiative focuses on enhancing productivity, improving quality, and ensuring sustainability, thus reinforcing the industry’s competitive edge. Complementing this, the Government’s ambitious goal to expand the Pradhan Mantri Bhartiya Jan Aushadhi Kendras to 10,500 by March 2025, along with a comprehensive range of 1,451 drugs and 240 surgical instruments, underscores its commitment to accessible and affordable healthcare.
Additionally, the National Medical Devices Policy, 2023, approved by the Union Cabinet in April 2023, aims to advance the medical device sector by focusing on access, affordability, and innovation. The Production Linked Incentive (PLI) scheme, with an impressive allocation of ₹15,000 crore ($ 2.04 billion) from 2020-21 to 2028-29, further strengthens India’s pharmaceutical manufacturing capacity. This scheme is divided into components such as the PLI Scheme for Key Starting Materials (KSMs)/Drug Intermediates (DIs) and APIs, which has already seen 51 projects selected and commissioned, attracting an investment of ₹2,019 crore and creating about 1,900 jobs. Meanwhile, the PLI Scheme for Pharmaceuticals has garnered investments of ₹16,199 crore and generated approximately 23,000 jobs, reflecting its significant impact. Relaxed FDI regulations, allowing up to 100 per cent for Greenfield projects and up to 74 per cent for Brownfield projects, further enhance the sector’s growth potential. With a cumulative FDI equity inflow of $ 22.52 billion and a significant budget increase for bulk drug parks to ₹1,000 crore ($ 120 million), the sector is poised for substantial expansion. According to the Economic Survey 2024, advancing skills, fostering innovation, and strengthening the supply chain are crucial to achieving the projected sector size of $ 130 billion by 2030.
Building a future-ready workforce with strategic skilling initiatives
The pharmaceutical and healthcare sectors in India are at a critical juncture where the rapid pace of technological advancements and global demand are outstripping the availability of skilled professionals. This gap poses significant challenges to sustaining growth and innovation, particularly as the industry evolves towards more complex and regulated domains such as biopharmaceuticals and advanced medical technologies. To address this, apprenticeships and comprehensive upskilling and reskilling programmes offer a robust solution to building a future-ready workforce. Unlike traditional education pathways, apprenticeships provide a unique blend of on-the-job training and theoretical instruction, ensuring that participants develop practical skills that are immediately applicable in the workplace. This model is especially beneficial in the pharmaceutical sector, where roles like bioprocessing technicians, quality control analysts, and regulatory affairs specialists are becoming increasingly crucial. By tailoring apprenticeship programmes to these emerging roles, companies can cultivate a workforce equipped to handle the complexities of modern pharmaceutical production and compliance, reducing the need for extensive retraining or the high costs associated with recruiting external talent.
In the UK, apprenticeships have become a cornerstone of the pharmaceutical industry’s talent development strategy, offering individuals the opportunity to gain hands-on experience while earning qualifications. These apprenticeships cater to a wide range of roles, both scientific and non-scientific, with programmes that can last anywhere from 1 to 5 years depending on the level of training. They range from entry-level apprenticeships to advanced master’s level qualifications, providing a clear and structured career path for those entering the field. Major pharmaceutical companies in the UK have embraced these programmes as an effective way to nurture a skilled workforce, ensuring that employees are well-trained and aligned with the latest industry practices and innovations. This model has proven to be cost-effective, allowing companies to tailor the training to their specific needs, resulting in a highly competent workforce that is ready to contribute to the industry’s growth. Given the success of such programmes in the UK, there is a strong need for developing and implementing similar apprenticeship initiatives in India. By adopting this approach, India can not only address the skill gaps in its rapidly growing pharmaceutical sector but also build a robust pipeline of talent capable of driving innovation
In India, the pharma sector has witnessed a significant expansion in apprenticeship programmes, driven by the need to build a skilled and versatile workforce. The apprenticeship engagement in the sector has grown 25 per cent year-on-year in the last two years to reach 22,731 in 2023-24, reflecting the steady prominence apprenticeships are playing in the creation of a skilled talent pipeline. These programmes cover a wide range of roles, including lab technicians, drug safety analysts, and retail pharmacy chemists, and have been supported by government initiatives such as the Skill India Mission and the National Apprenticeship Promotion Scheme (NAPS). These programmes are not just about filling immediate job vacancies but are part of a broader strategy to build capacity and capability within the life sciences sector. By providing on-the-job training alongside formal education, these apprenticeships ensure that the workforce is well-prepared to meet future challenges, particularly in areas like digital manufacturing, data analytics, and AI-driven drug discovery. This approach is essential for India as it strives to maintain its position as a global leader in pharmaceuticals, ensuring that it has a workforce that is skilled, innovative, and adaptable to the ever-evolving demands of the industry.
At present, the future of India’s pharmaceutical and healthcare sectors hinges on strategically cultivating a skilled and adaptable workforce. TeamLease Degree Apprenticeship is playing a strong role in championing the cause of apprenticeships, amongst organisations and youth alike in the field of pharma and life sciences. Since its inception in 2014, the company has hired about 1 million apprentices with more than 1000 employers in the past 10 years across industries. It is working closely with key stakeholders like industry, academia, youth, government, industry bodies & sector skill councils to create specifically designed courses for the pharma sector in creating a future-ready workforce. By embracing apprenticeships, upskilling, and reskilling as core talent development strategies, companies can address the immediate skills gap and lay the foundation for long-term industry leadership. These initiatives represent not just a cost-effective solution but a transformative approach to workforce development, empowering the next generation of professionals to drive innovation, enhance productivity, and meet the evolving demands of global healthcare.