Coronavirus: Niti CEO to find ways to reduce drug import dependence on China

New Delhi: The government is contemplating ways to encourage domestic manufacturing of active pharmaceutical ingredients (APIs) to counter a potential shortage of bulk drugs and intermediates amid the Covid-19 outbreak. A suitable ecosystem with focus on fiscal and procedural support to pharma companies is being considered.
People aware of the development told ET the broader vision was to make India competitive and self-sufficient in APIs in the medium- to long-term.

Niti Aayog chief executive Amitabh Kant on Wednesday chaired a meeting with representatives of top drug makers, like Dr. Reddy’s, Lupin, Glenmark, Mylan, Zydus, Pfizer and Biocon. They discussed ways to reduce import dependence on China for bulk drugs or intermediates.

The idea is to build API production capacity for 58 APIs, for which India is significantly dependent on China. The list has been compiled by the drug regulatory authority and contains antibiotics like azithromycin, amoxicillin, ofloxacin, metronidazole, vitamins such as B12, B1, B6 and E, female hormone progesterone and anticardiac arrest drug atorvastatin, among others.

“It is a good development. The government is willing to support the API industry. In the process, the industry will bounce back (and regain its) glory,” said Pankaj Patel, group chairman, Zydus.

Experts say the Indian API industry was ahead of China in the 1990s, but the advantages of free land, low cost utilities such as water, steam, power and negligible financing costs in China changed the dynamics, resulting in its atrophy here.

“The government is looking at developing API parks in India,” said VV Krishna Reddy, national president, Bulk Drug Manufacturers’ Association (BDMA).

It is learnt that the ministry of environment and forest has assured expeditious clearances to all such related proposals. “The government wants to build and revive the industry, build capacity and expedite environmental clearances,” said Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance.

Officials at the meeting with Kant were told to keep a watch on resumption of production, logistics, employees on duty and affected sites in China.