India reportedly imported active pharma Ingredient’s and drug intermediates a rise of about 58% . China was one of the major exporters of APIs and intermediates into India. The rapid rise in imports of APIs from China in the last few years is raising a major concern among Indian API manufacturers., It is of major concern as competition has increased and market for Indian manufacturers has become unhealthy in many APIs.
China has overtaken India as the main of source of APIs due to planned and sustained support from its Government in terms of infrastructure, subsidies, cheap power, transportation, dedicated capacities in voluminous manufacturing, effluent treatment facilities, industry-friendly labour laws etc. Such sustained mega growth can also be replicated in India with whole-hearted support from our Government on all these fronts.
Rising production cost and increasing pressure on margins are forcing Indian formulations to low-cost imports from China. “Generally, business will follow the economics of demand and supply, especially supply of APIs at absurdly low prices, almost tantamount to dumping. Again intermediates also need to be imported as the cost of procuring or manufacturing within India is very high and this leads to comparatively higher costs of APIs produced in india.
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