India to push for local manufacturing of APIs, reduce dependence on China

• In a bid to reduce India’s dependence on China for active pharmaceutical ingredients (APIs), the chemicals and fertilizers ministry has joined hands with other ministries to draw up a road map for increasing their production in the country.

• A high-level task force has been constituted to study global practices and draw up a plan aimed at boosting domestic production of APIs

• The specific areas of focus may include research and development, acquisition and commercialization, development of the industry, regulatory framework, potential impact on the industry, investments, contribution to the economy, exports, integration with value chains etc

=> Reason for the move

• Bulk drugs or APIs are the active raw materials used in medicines to give them their therapeutic effect.

• Currently, over 60% of APIs are sourced from other nations; for some specific APIs, the dependence is over 80-90%, according to the department of pharmaceuticals.

• India continues to rely on imports of key starting materials, intermediates and APIs from China, with the share of dependence increasing over time.

• This potentially exposes us to raw material supply disruptions and pricing volatility

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