India cuts dependency on imported raw material for drugs by 25%: Minister Mandaviya

Source: Reuters

India has reduced dependence on bulk drugs imported from various countries after boosting local production of the key ingredients used in medicines, health minister Mansukh Mandaviya said.

There has been a 25 percent decline in imports of key starting materials, active pharmaceutical ingredients (API), and drug intermediates because of an increase in their production in India, the minister said.

Asked how much India has reduced the import of APIs from China, Mandaviya, who also holds the chemicals and fertilisers portfolio, said without identifying any country that India does not want to be dependent on any country for its critical requirements.

To prevent a crisis that could be caused by a disruption in supplies of imported APIs or an increase in prices, India sought to encourage the local manufacture of 53 critical bulk drugs by offering financial incentives to pharmaceutical companies, Mandaviya said.

The productivity-linked incentive scheme was offered to manufacturers selected to make key starting materials, drug intermediates and APIs. The incentives will be provided on incremental sales over six years, with a financial outlay of Rs 6,940 crore.

APIs are the key ingredients that are used to prepare the final pharmaceutical product. A commonly used API is paracetamol, which is used to make drugs that act against pain.

India imported 390,476 metric tonnes of APIs valued at Rs 28,529 crore in FY21, Mandavia told parliament in response to a question in August last year. About 70 percent of India’s API requirements used to come from China.

India faced the risk of supply disruptions and price increases during border tensions with China in 2020 and after the spread of Covid-19 around the world led to lockdowns and shut down factories.

The minister said the Russia-Ukraine war and the stringent lockdown in Shanghai to curb Covid-19 didn’t have any impact on India’s pharmaceutical industries.

Commenting on the increase in prices of generic medicines such as paracetamol, Mandaviya said the government has not increased the prices of essential medicines.

The minister said Biological E and Bharat Biotech have sought approval for the use of their Covid-19 vaccines, Corbevax and Covaxin, respectively, in children. He said the subject expert committee has examined the applications and the drug regulator will take a decision on them.