Ramp up API sector

Besides the general alert sounded over the possible spread of coronavirus in the wake of the fresh Covid wave in China, the surge of cases in the neighbouring country has triggered a unique concern in India. With over 65 per cent of the active pharmaceutical ingredients (APIs) needed by India’s pharmaceutical industry imported from China, the fear of disruption in the supply of these critical raw components of medicines is legitimate. The impending crisis should be turned into an opportunity and act as a catalyst to ramp up the indigenous API sector. Not only will it bring down the dependence on China but also make medicines cheaper.

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Though India currently accounts for just 8% of the worldwide API market, given the huge pool of scientists, engineers and drug manufacturers, the potential for its expansion is massive. With a view to tapping into this resource, in 2020, the Union Cabinet approved the Production Linked Incentive (PLI) scheme of up to Rs 6,940 crore for the API sector as part of the Atmanirbharta initiative. However, as of March this year, the manufacturing of only 35 APIs, that are imported, had begun under this plan from 32 plants, including those in Himachal Pradesh. Notably, these 35 APIs are among the 53 for which India has 90 per cent dependence. The authorities concerned would do well to look into the hurdles blocking faster growth of the sector. Expediting the processes needed to start production at the bulk drug park in Himachal Pradesh would also help achieve this goal. At the present rate of progress, API manufacturing in the park cannot begin before three years.

The pandemic provided India the opportunity to showcase itself as a pharmaceutical giant. It stood on a par with the world’s best, becoming one of the few nations to make an anti-Covid vaccine. It boasts of being a pharmaceutical hub as globally, it is the largest provider of generic drugs and fulfils 40% of the generic demand in the US and 25% of the UK’s medicine demand. India surely has the capability to increase its API capacity.