Higher duties on Chinese merchandise may be on the playing cards, official sources stated. These strikes gathered tempo within the wake of the army face-off between India and China in east Ladakh and the persevering with diplomatic pressure since then, prompting the federal government to discover all choices to cut back import dependence on China. India imports greater than 53 crucial pharma APIs, together with these utilized in tuberculosis medicines, steroids and nutritional vitamins from China.
It additionally imports uncooked materials for medical units, pharma packaging materials like plastic, polymers and small elements for medical equipments and units from China.
“Firms have told us that they have adequate stocks in the inventory and so far, trade relations are running smooth. But this is not so much an immediate issue. The aim right now is to reduce import dependence on China — not just in pharma but all sectors — most importantly in pharma because this is crucial and India is dependent on China for API,” an official within the division of prescription drugs stated. He stated authorities is working in direction of lowering import dependence in order that in case of tensions between the 2 nations, India’s drug provide is secured.
The home API manufacturing business, principally primarily based out of Hyderabad and Ahmedabad, at the moment accounts for 8-10% of India’s over Rs 1.33 lakh crore pharmaceutical market. The relaxation includes formulations. Now, Indian drug makers are additionally exploring choices in EU markets to supply APIs and different uncooked supplies. India is probably going to supply extra APIs from Germany, Sweden and Italy, even because it additionally ramps up native manufacturing.
At current, 3035% of API imports are from these nations, whereas China caters to the remainder. However, India might have to cope with price pressures as China provides merchandise at 25-30% cheaper than different markets. “Supplies from China are crucial not only because of the price factor but because these are routine products used in huge quantities. India produces complex API molecules on its own but their use in formulations is limited,” an business government stated.