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

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Last Updated on October 6, 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.

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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.

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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.

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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.