While governmental efforts are underway to curtail dependency on foreign-sourced medicinal raw materials through a series of initiatives, imports of active pharmaceutical ingredients (APIs) and drug intermediates from China have surged by 64.5% in Rupee value over the past five years.
Data from the Ministry of Chemicals and Fertilisers highlights that the import value of bulk drugs escalated to Rs. 27,055 crore in 2023-24 from Rs. 16,443 crore in 2019-20, with Chinese imports representing a significant share of India’s total pharmaceutical raw material inflow.
During 2023-24, imports from China expanded by 5.89%, climbing from Rs. 25,551 crore the previous year. Nonetheless, this was a weaker increase compared to the almost 10% uptick seen in 2022-23, contrasting with Rs. 23,273 crore reported in 2021-22.
Over five years, the bulk import quantity advanced nearly 56% to reach 3,44,152.8 metric tonnes in 2023-24, up from 2,20,875.2 metric tonnes in 2019-20. The 2023-24 import volume was a 14.7% rise from the 3,00,120.2 metric tonnes imported in 2022-23, as indicated by Ministry records laid before the Lok Sabha.
Earlier data showed a 13.2% reduction in the volume of bulk drug and intermediate imports in US Dollar terms during the first half of the current fiscal year, as opposed to the corresponding period of the previous year. For the quarter ending September 30, 2024, there was a notable 33.5% decline compared to that same quarter in the past year.
Between April and September 2024, the overall import value of bulk drugs and intermediates stood at $1.934 billion, down from $2.228 billion for the same timeframe the previous fiscal year.
Import figures from China, contributing around 74% of the total for the first six months of this fiscal year, witnessed a drop of 10.38% to $1.44 billion, from $1.60 billion for the April to September period in 2023. This minor growth in 2023 followed a nearly static figure from the year prior, reflecting $1.59 billion imports, as per Commerce and Industry Ministry data.
To mitigate reliance on imports, the Central government remains committed to diminishing the importation of crucial pharmaceutical ingredients. Various incentive schemes have been introduced to bolster domestic production.
To further incentivize local manufacturing of vital starting materials and APIs, the Department of Pharmaceuticals has recently updated the guidelines under the PLI scheme. These revisions are designed to aid the industry through enhanced business facilitation and access to the Scheme’s advantages.