As the Indian nation demanded for banning products and cancelling contracts from China, it’s apparent that, at least in pharma, it may not quite work out as imports from China account for 80% of total raw materials for making medicine, also called API (active pharmaceutical ingredients). For certain life-saving anti-biotics, the dependence is 90%.
The India-China border standoff as reported, has put the spotlight back on near total dependence on China for crucial raw materials used in medicines in India, posing a potential ‘national risk’ for millions across the country.
India imported Rs 17,400 crore worth of APIs from China in 2019. Dependence on China for key APIs has been an ongoing concern for the industry, with crucial raw materials used for manufacturing cardio-vascular, diabetes, antibiotics, anti-infectives and vitamins imported from there.
In March, left with depleting stocks of APIs in the country, the government decided to de-risk the supply chain, and announced a
Rs. 9,940-crore package for bulk drugs involving a production-linked incentive scheme of Rs. 6,940 crore, and setting up of three bulk drug parks of Rs. 3,000.
Nearly two decades ago India was self-dependent on key ingredients. But over the years API imports spiked from 1% in 1991 to about 70% in 2019.
