In the virtual inauguration event, Global Innovation Summit of the Pharmaceutical sector, Prime Minister Narendra Modi stressed on ramping up the domestic manufacturing of key ingredients for medicines and vaccines. “Our vision is to create an ecosystem for innovation that will make India a leader in drug discovery and innovative medical devices,” added the PM.
It is true that India lacks the infrastructure for the indigenous production of ingredients for medicines and vaccines. The nation is heavily dependent on the countries like China and USA for meeting the pharmaceutical needs. For example - As much as 65% to 70% of APIs needed for the manufacturing of medicine and vaccines come from China. With the ongoing situation, India's government and the corporate pharmaceutical companies need to take firm decisions in order to make rapid strides.
Relevant government policies
To transform India’s raw materials manufacturing segment, the country needs to invest and innovate possibilities of offering new schemes and policies. To start with, initiatives like Ideate in India, Innovate in India, Make in India are already making some difference in the market. Recently under the “Atmanirbhar Bharat”, the government of India announced to localize the manufacturing of 53 critical APIs and intermediates by launching the PLI scheme.
However, in order to develop the indigenous manufacturing of APIs, the countries' manufacturers need to match the prices offered by the already established Chinese market. High investment needs to be done in order to match the demand and shift the buyers of China’s API to India.
The PLI scheme, therefore, needs to be drafted in a way to protect the Indian API industry from the predatory moves of the Chinese manufacturers. In such cases, a framework must be developed, so that the Government can intervene to neutralize the price difference. But, nothing has been framed yet to protect the growing segment of API.