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BIG OPPORTUNITY FOR INDIA
Down To Earth
|May 01, 2020
India can replace China as the world’s preferred source of pharmaceutical ingredients
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BULK OF the active pharmaceutical ingredients (APIs) required by the pharma industry across the world is produced in China and India. The COVID-19 pandemic has exposed the risks of global supply chains being focused on a single country, which currently is China. COVID-19 has sent alarm bells to national security establishments in many countries, including India, on the risks of relying on a single country for the supplies. So far, the economic efficiency argument prevailed, but now the security dimension is on the forefront, which would result in many countries adopting measures to reduce reliance on China. In such a scenario, India is likely to become the preferred country for sourcing APIs.
INDIA’S GAINS FROM THE OPPORTUNITY IN THE API BUSINESS WOULD DEPEND ON HOW SWIFTLY ITS POLICYMAKERS RESPOND TO IT. WHILE INDIA IS AN EXPORTER OF CERTAIN APIS, IT IS QUITE DEPENDENT ON CHINA FOR MANY OTHERS
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