Misplaced rage

India is unlikely to find alternatives for its drug industry if it shreds its dependence on China’s active pharmaceutical ingredient (API) supplies amid the country’s recent movement to boycott Chinese products.

The Indian government will reportedly announce the final guidelines for its Production Linked Incentive (PLI) Scheme by the end of this year, aiming to encourage the local production of APIs, according to local media. It is said the scheme will have financial implications of more than 6,940 million crore rupees ($913,272) over the next eight years.

China’s API industry plays an exclusive role in the global supply chain, particularly for major importers like India. India has been importing an average of 68 percent of its total bulk drugs and intermediates from China every year, the Times of India reported.

A total of $5.65 billion worth of APIs were exported to India in 2019, accounting for almost 17 percent of

China’s total API exports that year, but most were APIs and pharmaceutical intermediates with low added value like penicillin, cephalosporins and hormone drugs.

The production of such APIs usually involves high-energy microbial fermentation and high water and electricity consumption, which are still lacking in India, meaning the country will be unable to shake China’s exporter status for several years, Wang Xuegong, deputy director of the China Pharmaceutical Enterprises Association, said.