NEW DELHI: To reduce dependence on China for Active Pharmaceutical Ingredients (API), a report of the Ministry of Science and Technology has recommended a slew of measures, including a re-look at custom duty, to facilitate indigenous production. At present, India’s pharma sector imports a whopping 68% of its API requirement from China.
Companies using indigenous API must get preference in government procurement, the report suggests while seeking priority licence renewal for API manufacturers. It also recommends relaxation in environment clearances and land acquisition for them.
“India has been manufacturing bulk of APIs till about two decades back... Given the changes in global norms, we quickly need to ensure API security in the country and prepare a national stockpile of generic medicines for critical illness,” the report says.
In 2019, India imported `249 billion worth of intermediates and APIs, of which around `169 billion was from China. A total of 600 molecules of APIs and Drug Intermediates are imported, of which 58 molecules are sourced only from China. India has the technology but needs to optimise cost by scaling up API manufacturing. Towards this end, common facilities such as solvent recovery plants, distillation plants, power and steam units should be established in bulk drug parks, it suggests.