India’s Fight to Reduce Reliance on China for Bulk Drug

The Indian government is actively taking steps to reduce dependence on China for bulk drug

May 6, 2024

129

medicine Drugs Tablets Pills — Picture: Pixabay

Table of Contents

Last Updated on May 14, 2024 by The Health Master

Bulk Drug

India, a leading global supplier of generic drugs, is grappling with a complex situation regarding its dependence on China for bulk drug materials.

Even with government efforts to boost domestic production, import figures reveal a concerning trend.

Follow us on WhtasApp Channel

Rising Overall Imports and China’s Dominance

According to official data, India’s total imports of bulk drug and intermediates witnessed a 4.12% increase in FY 2023-24, reaching a value of ₹37,721.88 crore.

This growth comes despite government initiatives aimed at reducing reliance on foreign imports.

However, a more concerning aspect is China’s dominance in this sector.

Imports from China constituted a staggering 71.72% of India’s total bulk drug imports in FY 2023-24, reflecting a rise from 68.02% in 2019-20.

This trend highlights India’s vulnerability to potential supply chain disruptions or price fluctuations dictated by China.

Click for more Articles on Pharmaceuticals

Click for more Legal Articles on Pharmaceuticals

Import Trends: Fluctuations and Growth

The past five years have seen a fluctuating pattern in import value.

The significant increase during the COVID-19 pandemic years (2020-21 & 2021-22) can be attributed to disruptions and rising costs.

However, the growth rate has slowed down in recent years, dropping to 2.78% in FY 2022-23.

Interestingly, import value growth from China has shown a similar deceleration.

While initial growth rates were high (19.95% in 2021-22), they have dipped to 5.89% in FY 2023-24.

This suggests a potential silver lining, indicating a possible diversification of import sources or a gradual increase in domestic production.

Click for Guidance documents for industry

Government Initiatives to Promote Self-Sufficiency

The Indian government is actively taking steps to reduce dependence on China for bulk drug. Here’s a breakdown of key initiatives:

Production Linked Incentive (PLI) Schemes: Two PLI schemes offer financial incentives for domestic manufacturing of critical Active Pharmaceutical Ingredients (APIs), Key Starting Materials (KSMs), and Drug Intermediates (DIs).
Bulk Drug Parks Scheme: This scheme provides financial assistance to states establishing dedicated parks for bulk drug manufacturing, promoting infrastructure development and attracting investment.
Regulatory Measures: The Department of Pharmaceuticals (DoP) is working with the Ministry of Health and Family Welfare to streamline regulations and encourage domestic drug manufacturing.

Looking Ahead: A Balancing Act

While India’s import figures continue to show a reliance on China, government initiatives offer a glimmer of hope for achieving self-sufficiency in bulk drug production.

The success of these initiatives hinges on attracting investments, expediting approvals, and ensuring a robust domestic manufacturing ecosystem.

Striking a balance between promoting domestic production and maintaining competitive import options will be crucial for India’s long-term pharmaceutical security.

Here’s a table showing the Indian Imports of Bulk Drugs and Intermediates in Five Years:

Year	Quantity (MT)	Value (Rs. Crore)	China Quantity (MT)	China Value (Rs. Crore)	China % of Overall Imports	Overall Import Growth	China Import Growth
2019-20	364432.49	24171.78	220875.185	16443.1	60.61	–	–
2020-21	390475.72	28528.97	256608.708	19402.61	65.71	5.34%	9.17%
2021-22	400642.47	35248.63	264582.478	23273.02	66.03	7.15%	16.18%
2022-23	402111.18	36229.15	300120.2	25550.91	74.6	18.02%	19.95%
2023-24	451894	37721.88	344053.2	27055.22	76.0	2.6%	13.43%

Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model to rewrite and present the news or article in a unique format.