|
Indian pharma’s credit infrastructure underdeveloped and continues to stifle growth: MV Krishna
|
|
Nandita Vijayasimha., Bengaluru
May 29 , 2025
|
|
|
Indian pharmaceutical sector’s credit infrastructure, especially in tier-2 and tier-3 markets, has long remained underdeveloped and continues to silently stifle growth, said Mannuri Vamshi Krishna, founder & CEO, MedScore.
Credit innovation in the pharmaceutical supply chain is not just a strategic add-on, it is a fundamental necessity. It enables businesses to operate confidently, ensures liquidity remains stable across the ecosystem, and encourages growth, even for smaller players in underserved regions. In quantifying trust and formalising credit practices, the industry moves towards a more predictable and resilient future, he added.
While logistics and inventory management have benefited from rapid digital adoption, the financial layer, specifically trade credit assessment, has not evolved in tandem. It remains largely informal, reliant on interpersonal trust, manual record-keeping, and rudimentary estimations. This lack of structure exposes countless small and mid-sized enterprises (SMEs) to delayed payments, defaults, and cash flow disruptions, making them financially vulnerable, said Krishna.
In an industry as essential as pharmaceuticals, ensuring continuity of medicine supply should be non-negotiable. But that cannot be achieved through operational improvements alone. Financial trust is equally vital. Accurate, real-time data and structured tools to assess creditworthiness can help stakeholders such as pharmacies, distributors, and manufacturers make informed credit decisions, reducing exposure to risk and maintaining healthy receivables, Krishna told Pharmabiz in an email.
Ultimately, financial innovation must go hand in hand with operational advancements. By embedding financial intelligence at the core of the supply chain, the pharmaceutical sector can enhance trust, boost sustainability, and improve healthcare delivery across the nation, he said.
Improving healthcare access in India, discussions often focus on physical infrastructure, medical professionals, and distribution networks. While undeniably important, there exists a fourth pillar that frequently goes unrecognised, financial tools that underpin and enable sustainable operations throughout the healthcare ecosystem, he noted.
Many pharmacies, distributors, and healthcare suppliers in rural and semi-urban areas operate on thin margins and are heavily dependent on credit. In the absence of reliable systems to assess creditworthiness, these businesses are routinely exposed to defaults and delayed payments, often leading to operational disruptions and, in some cases, closures. The resulting cash flow bottlenecks ultimately affect the availability of essential medicines and healthcare services to end consumers, said Krishna adding that with MedScore and Medvolant, our vision is a borderless healthcare system where innovation, credit insight, and effective delivery merge to provide quality care accessible to all, irrespective of geography or economic boundaries.
This is where financial instruments, specifically tech-enabled credit risk assessment and management tools, can create real impact. By providing objective, data-driven insights into the financial standing of buyers and suppliers, such tools empower businesses to extend trade credit judiciously, preserve working capital, and sustain operations even under challenging circumstances, he said.
More importantly, they enable a robust healthcare supply chain, one that is capable of serving communities reliably and consistently. As financial transparency improves, so too does the confidence of every player involved, from manufacturers to frontline pharmacies, said the MedScore chief.
In the healthcare context, financial tools are not merely supportive systems, they are catalysts for change. Just as medical innovations save lives in clinics and hospitals, financial innovations ensure those life-saving treatments are never out of reach due to preventable monetary setbacks, said Krishna.
|
|
|
|
|
|
|
|
TOPICS
|
That foods might provide therapeutic benefits is clearly not a new concept. ...
|
|
|
|
|