These are testing times for India’s Rs 3.74 lakh crore pharmaceutical industry. Disruptions in the flow of active pharmaceutical ingredients or API (which are the building blocks of medicines), key starting material (KSM) and drug intermediates from China have made the industry wary. As of now, they are in two minds: whether to produce some of the material in India or turn elsewhere, perhaps to Europe, to source it, though it will be costlier. The rising cost of imported APIs has also hit cost of production and the margins of Indian firms. According to the commerce ministry, between March and May this year, there has been a 20 per cent increase in drug prices due to the impact of COVID-19.
India meets most of its API needs through imports from China. In 2018-19, APIs worth Rs 16,900 crore was imported, accounting for 67.6 per cent of India’s total imports while API exports to China were worth a mere Rs 1,600 crore. This is a drastic comedown from the situation 25 years ago when much of the pharma industry’s needs were met by domestic API production. However, as the Indian pharma industry moved up the value chain to make finished drugs, it began to rely more on China for low-cost raw material. Currently, domestic APIs (there are about 1,500 plants making APIs) accounts for just 10 per cent of the market. The government now plans tighter regulations and higher duties for imported Chinese APIs and KSM for medicines and even medical devices (China’s share is about 11 per cent in this). It’s also working towards reducing import dependence so that in case tensions worsen between the two countries, India’s drugs security is ensured. India is also likely to source more APIs from Germany, Sweden and Italy. The Indian pharma industry is the third largest in the world by volume and 14th in terms of value.
This story is from the July 13, 2020 edition of India Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 13, 2020 edition of India Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
BJP's Big Paschim Test
On paper, the BJP-RLD tie-up is a winner for the NDA in west UP, though the INDIA bloc thinks otherwise. The BSP's entry with mixed candidates can unsettle both alliances
Why Gen V Matters
The Way The 210 Million-Strong Generation Viksit Bharat Casts Its Vote Will Determine The Outcome Of This Election As It Has In The Past
Heart Stopper
Cushions with tales of beauty, serenity, art and nature
THE NIPPON NARRATIVE
Say konnichiwa to good design and sayōnara to bad aesthetics, as this apartment in Bangalore is a lesson in how to use Japanese design effectively
RURAL RESPLENDENCE
This second home in a small village in Uttar Pradesh brings to life the beauty and simplicity of locally sourced materials
Curves in the Right Places
Arches may be taking over interior design, but how and where you place them in your home can make or mar the look of the room
Marvels in Mud
Here's how this humble material is changing the way we look at eco-friendly homes in India
DESIGN FOR THE AGES
Five homes, five distinct design styles that help decode how to curate age-appropriate spaces
TAKE FIVE
FROM RUGS TO CUSHIONS, THESE DECOR PIECES WILL GIVE YOUR INTERIORS AN INSTANT MAKEOVER THIS SEASON
TRENDY TABLESCAPES
At the turn of the season, three fashion labels throw a soiree that is stylish, suave and sophisticated