Air pollution costs Indian business 95 Billion USD each year

 Air pollution costs Indian business 95 Billion USD each year, major report shows

The report is the first to estimate the business cost of pollution in India, with the aim to motivate companies and policymakers to actively champion clean air

Air pollution costs Indian business about USD 95 billion (7 lakh crores) every fiscal year, around 3% of India’s total GDP, a major research report shows. The cost is equal to 50% of all tax collected annually, or 150% of India’s healthcare budget. The findings in the report, undertaken by Dalberg Advisors in partnership with Clean Air Fund and the Confederation of Indian Industry (CII) add urgency to tackling air pollution by outlining that it imposes heavy economic costs as well as devastating health impacts.

Dalberg estimate that India’s workers take 1.3 billion days off work annually because of the adverse effects of air pollution on their health, amounting to USD 6 billion in lost revenue. Air pollution has also been shown to have significant effects on workers’ cognitive and physical performance, lowering their on-the-job productivity and thereby decreasing business revenues by up to USD 24 billion.

 Further impacting the national economy, the report found that lower air quality also reduces consumers’ willingness to venture out of their homes, leading to lower footfall and ultimately USD 22 billion less revenue for consumer-facing businesses.

India had 1.7 million premature deaths from air pollution in 2019, 18% of all deaths in India, a figure that is projected to increase by 2030, making India a major contributor to the global economic cost of premature mortality. In economic terms the lost working years cost the Indian economy USD 44 billion in 2019.

The report further reveals that India’s IT sector, the source of 9% of the country’s GDP and a magnet for foreign investment, is disproportionately affected, losing USD 1.3 billion due to pollution-induced productivity loss per year. If air pollution continues to increase at currently projected rates, this figure could nearly double by 2030.

 India has grown to become the world's fifth most polluted country in the last decade and has 21 of the world's 30 most polluted cities. As India’s median age rises from 27 in 2019 to 32 in 2030, vulnerability to air pollution will increase as mortality due to air pollution-linked pulmonary problems and lung cancer will grow at an accelerated pace, as these illnesses tend to affect the elderly harder.

Speaking at the launch of the report, Mr. Gaurav Gupta, Partner, Asia Director, Dalberg, said, “This report shows how air pollution affects the overall health of businesses and the economy. While the government has taken aggressive measures to address the issue, the emphasis on air pollution across the globe has continued to be on its public health implications. It has now become important for Indian business to include air emissions in their profit and loss statements.  Clean air is a precondition for businesses to thrive – and for India to realise its vision of becoming a USD 5 trillion economy by 2025. Achieving this goal would require industry leaders to take more ownership and become advocates in the movement for cleaner air.”

 Ms. Seema Arora, Deputy Director General, CII, said, “As per the survey insights, interviews and data analysis that went into the preparation of this report, it is clear that individual businesses – and their employees – have a direct stake in improving air quality. While there is a need of a lot of thinking to be done here, the business solutions to this business crisis as per our findings include ‘’greening’’ business operations and supply chains, adopting renewable energy technology, mitigating emissions through CSR activities, and campaigning for more ambitious pollution policies. We believe that through active and sustained collaboration between the public and private sectors, bluer skies and a healthier economy can soon become India’s reality.”

The report notes that air pollution has a substantial impact on India’s economy, alongside the health and environmental impact and that by improving its air quality, India will not just be healthier but also wealthier.

Full report available here – http://bit.ly/airpollutioncosts

 

Patrician College with the support of CII

Patrician College with the support of CII (Confederation of Indian Industry) will be organising a Mega Job Fair for the students of Colleges in and around Tamil nadu which will be conducted on March 16, 2019 from 9:00am to 5:00pm. Post Job Fair, the applicants will be registered in the National Career Service portal, a division of Ministry of Labour and Employment, owned by Government of India. We believe that the responsibility of the Institution is beyond giving the education to students to qualify their academic with flying colours. We take additional responsibility to support them in making a right start of their career. In our desire to help them in this aspect we have organised “Job Fair – 2019” on March 16th Saturday.

Indian bio similar market to be worth $40

 Indian bio similar market to be worth $40 billion by 2030

Active engagement in Indian industry with about 70 approved bio similars - Urgent need to expand markets & de-clog RoW market access to actualize potential for global leadership 

The Confederation of Indian Industry (CII) & Sathguru Management Consultants released a position paper on Indian Biosimilars Industry – “Indian Biosimilars Industry: Roadmap to Actualize Global Leadership” at the 2nd National Biotechnology Conclave 2018 - Driving Inclusive Growth for Indian Bio-economy Vision- 2025 organised by CII in Delhi.

Biosimilars present a very attractive opportunity for Indian pharma companies going beyond small molecule generics ridden with intense competition and price pressures.  Based on analysis of currently approved biologic drugs and global pipeline, in the most optimistic scenario, we estimate that the global biosimilar market will be worth of $240 Billion and Indian biosimilars market will be worth of $40 billion by 2030.  Growth is being driven by increasing market maturity in Europe, more recent forthcoming environment for regulatory approvals in US and high unmet clinical need across RoW markets.  

With record number of domestic approvals, active engagement in semi-regulated markets and growing footprint in regulated markets, the Indian biosimilar industry is poised at the cusp of growth. There are more than 70 biosimilars approved in the country today.  The revised Indian guidelines released in 2016 have not only resulted in a rigorous framework for approvals in India, but have also paved the way for leaner bridging effort to enter global markets. At this juncture, it is imperative to nurture the vibrant industry landscape and support the industry in value realization.  Major challenges to combat to secure a sustainable future for Indian-made biosimilars and key recommendations are:

1.    Expanding markets in domestic landscape:  Biosimilars as a means to overcoming affordability barriers is a promise that is a promise that is yet to be translated to reality in several countries including India.  Though substantial level of price erosion has been breached, overall market size is currently unattractive as volume penetration remains significantly low.  For instance, one of the more mature assets in India, Trastuzumab biosimilar had overall sales of about Rs. 286 crores in 2017 translating to less than 10% penetration when assessed on the basis of overall clinical need. Price control has had insignificant impact on expanding access as overall cost of care in indications such as oncology still remains out of reach for majority of the population.  Hence, is it is important to consider other models of aggregated and negotiated buying for public health so that blanket price control can be avoided.  It is critical that affordable biologics are included in national coverage programs to expand access, especially at a time when landmark public health programs such as Ayushman Bharat PMJAY are rolled out.  Finally, as done in certain European countries with high success in biosimilars adoption, a multi-stakeholder approach has to be engaged to drive greater awareness, clinical adoption and market expansion. 

2.    Strengthening upstream technology backbone: Sustainable success in the segment will hinge on production economics, especially as prices erode and unit cost and enhanced capex recovery become critical.  There is urgent need to strengthen industry's backbone in upstream technology development, especially in areas such as high yielding clones and industry-academia platforms should be explored.  For near term impact, globally benchmarkable non-dilutive funding and fiscal incentives for technology acquisition should be considered. 

3.    Paving the way for sustainable leadership in global markets: As regulated markets embrace biosimilars and move towards higher market maturity, it is optimal time for the industry to expand thrust on regulated markets, that will constitute majority of the near term global markets by value.  However, given the significant level of binary risk per asset (clinical development investments of about $100 to $150 million per asset), key to defraying risk and expanding investment appetite will lie in more aggressively pursuing strategic partnerships with global as well as domestic counterparts. The Biocon-Mylan partnership is a great testimony to strategic value of such partnerships and has resulted in Indian developed biosimilars being among the first wave of approved assets in regulated markets.  For RoW markets, the WHO PQ presents great promise as a mechanism that can provide aggregated access to multiple markets that are relatively less mature.  India should encourage fast tracking of the WHO PQ pilot while pursuing regulatory reciprocity in select markets until such aggregated possibility is a tangible reality.  Finally, as done through bodies such as PHARMEXIL in small molecule drugs, a multi-stakeholder approach to enhance global reputation and support global market access will greatly accelerate market expansion in the fragmented RoW markets. 

                About Sathguru Management Consultants:

                Sathguru Management Consultants is a 30 year old firm with market leading presence across all segment of Lifesciences – human health, agribusiness, food and animal health.

                Over the last 30 years, Sathguru has evolved a unique approach to consulting. Our combination of business advisory (strategy, operations & commercial), corporate finance & M&A, innovation advisory differentiates us and provides us a techno-commercial perspective. 

                Sathguru’s holistic view stems from engaging with clients across the ecosystem – market leading large companies, young ventures, research institutions, funders and policy makers. Sathguru also known for industry depth and pragmatic approach that stems from an integrated team engaging across strategy as well as key execution areas such as M&A, innovation advancement and strategic partnership. Sathguru has a team of about 200 professionals and has offices in India, USA, Africa, Bangladesh and Nepal.