14000 Cr. for Bulk Drug Parks to reduce import dependence of this key pharma input (API) from China.

The government has announced it will promote common infrastructure facilities in three 'Bulk Drug Parks' with the financial investment in the next five years that would incentivise production of active pharmaceutical ingredient (API) in the country and reduce import dependence of this key pharma input from China.

What is API:
API (Active Pharmaceutical Ingredient) means the active ingredient which is contained in medicine. For example, an active ingredient to relieve pain is included in a painkiller. This is called API. A small amount of the active ingredient has an effect, so only a tiny part of the active ingredient is contained in medicine. You will find the name and amount of the active ingredient contained in the medicine on the package of OTC (over-the-counter) drugs.

How much India import form China?
API also known as bulk drugs. Indian drug-makers import around 70 per cent of their total bulk drug requirements from China. In the 2018-19 fiscal, the government had informed the Lok Sabha that the country’s drug-makers had imported bulk drugs and intermediates worth $ 2.4 billion from China.

Crisis
Despite being a leading supplier of high-quality medicines to several countries, Indian pharmaceutical industry is highly dependent on China for raw materials even to produce medicines as basic as Crocin.

The Covid-19 outbreak has resulted in complete stoppage of import of bulk drug and API to India. This has created a scare that if the pandemic is long drawn, there could be a shortage of drugs in the country.

Silver lining
the government has initiated measures to ensure adequate domestic production of raw materials going into pharmaceutical drug manufacturing amid coronavirus outbreak. The decision will help Indian manufacturers reduce their over-dependence on China for key raw materials. Almost three-fourth of raw materials used by pharmaceutical manufacturers in India are currently imported from China.

The government has announced it will promote common infrastructure facilities in three 'Bulk Drug Parks' with the financial investment of Rs 3,000 crore in the next five years. Further, it will create a Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs), drug intermediates and Active Pharmaceutical Ingredients (APIs) in the country with financial implications of Rs 6,940 crore for the next eight years.

Additionally, the pharma sector package has also proposed setting up medical device park in four states with a grant of Rs 100 crore to each state that is setting up these parks. A budget of Rs 3,420 crore has also been made to incentivise production of medical devices by companies.

India contributes 20% to the global generics market. Every third tablet sold in the US is from India.

"China has gained importance in fermentation-based APIs namely, antibiotics and vitamins. The government policy to encourage fermentation-based industry will help build self-reliance", said Pankaj Patel, Chairman, Zydus Cadila.

Dilip Shanghvi, Managing Director, Sun Pharma said, "The new policy is a bold announcement by the government and will give the necessary fillip to the API industry in India. I would like to congratulate the government as this will safeguard healthcare security and create ecosystem for strong Indian API industry."

Information Source: Internet.