Indian Government plans to curb the Pharma industry's dependence on China
New Delhi, June 5 2012: In a bid to make the pharma industry more self-sufficient, the government has started the process of reducing the growing dependence on China as far as the domestic pharma industry is concerned.
It has been learned that the Organisation of Pharmaceutical Producers of India (OPPI) has submitted a list of drugs to the Commerce Minister Anand Sharma when the Group of Ministers met on May 14. It may be noted here that the minister had asked the industry body to share the details of drugs whose production has either shifted to China or whose manufacture in India is dependent on imports from China from the 74 price controlled bulk drugs, including the critical penicillin.
It is believed that this move will make the industry more self-sufficient to achieve the goal of becoming a major supplier of low-cost drugs. For the record, the government is responsible for fixing the retail prices of the drugs that are made from the 74 bulk drugs. While the Indian pharmaceutical market valuing at Rs. 62,000 crore ($11.18 billion) stands neck-to-neck with global pharma majors in finished drugs but the industry is still dependent on China for raw materials.
Close to two-third of raw materials that are used by the Indian pharma companies are imported from China, according to DG Shah, Secretary General, Indian Pharmaceutical Alliance. Shah added that a large chunk of the anti-infective drugs, close to 20% of the total are made by using two derivatives of penicillin (Pen G or 6APA) in India.
It is expected that these measures will help the Indian pharma industry to become more self-sufficient in nature and will prepare it for a sustained long-term growth.