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Explained: impact on Indian pharma as China exports stuck at ports

Jul 08, 2020 14:39 IST

Shipments from China with API's or raw materials i.e. key starting materials to make API's for making coronavirus medicines are stuck at Indian ports as Indian authorities have delayed clearances owing to issues at Galwan Valley. India imports $3.5 bn worth of bulk drugs from China. 65% of our total drugs and intermediates come from China. How will the India-China border dispute affect local and export pharma industry in India? Daara B. Patel, Secretary General, Indian Drug Manufacturers Association, says that Indian pharmaceutical sector is highly regulated and price controls are draconian. Companies need time to switch sourcing from China to sourcing from other countries, which will be costlier. Government will have to understand and help, as of now material is needed from China. Fortunately, there are new production-linked incentive schemes that will aid production, but there are several procedures to be followed. We will be self-reliant in around a year. Watch BOOM's Govindraj Ethiraj interview Daara B. Patel on the way forward for Indian pharmaceutical industry in the backdrop of strong anti-China sentiment and a push for ban or tariffs of Chinese imports.