India’s dependence on imports for bulk drugs and APIs

New Delhi, May 09, 2015: As per the Boston Consulting Group Report of 2013 import of Active Pharmaceutical Ingredients (APIs) during the year 2013 was approximately US $ 3.5 billion of which a large share was from China. The Government had constituted a High Level Committee known as the Katoch Committee on 08.10.2013 to study and identify the APIs of critical importance and to work out a package of interventions/concessions required to build domestic production capabilities and to examine the cost implications. The Katoch Committee has inter-alia recommended establishment of Mega Parks for APIs with common facilities such as common Effluent Treatment Plants (ETPs), Testing facilities, Captive Power Plants/assured power supply by state systems, Common Utilities/Services such as storage, testing laboratories, IPR management, designing, etc., maintained by a separate Special Purpose Vehicles (SPV); a scheme for extending financial assistance to states to acquire land and also for setting up common facilities, revival of public sector units for starting the manufacturing of selected and very essential critical drugs (e.g., penicillins, paracetamol etc.); financial investment from the Government for development of clusters which may be in the form of a professionally managed dedicated equity fund for the promotion of manufacture of APIS and extending fiscal benefits to creation of the entire community cluster infrastructure and individual unit infrastructure; extension of fiscal and financial benefits to promote the bulk drugs sector; promoting stronger industry-academia interaction, synergizing R&D promotion efforts by various govt. agencies, icentivising scientists, duty exemptions for capital goods imports.

These recommendations are being examined for formulation of a Policy for Promotion of Manufacturing of Bulk Drugs.

This information was given by Shri Hansraj Gangaram Ahir, Minister of State of the Ministry of Chemicals and Fertilizers in the Rajya Sabha.