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Pricing recovery expected for API firms in FY27: Ind-Ra
Financial Express Pune
|March 06, 2026
THE PRICES FOR active pharmaceutical ingredients (API) will recover in FY27 due to the implementation of a minimum import price (MIP) starting January 29, 2026 and China’s withdrawal of the value-added tax (VAT) rebate from April 1, 2026, said an India Ratings report.
The ratings agency expects volumes to strengthen with easing destocking and improving demand from the US and the European Union, aided by a favourable shift towards high-value contract development and manufacturing organisation (CDMO) and complex APIs.
Starting April 2026, China is abolishing or reducing export VAT rebates for 249 items, including chemicals, solar (PV) components, and batteries to curb overcapacity, reduce international trade tension, and deal with dumping.
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