India’s pharmaceutical industry, widely recognised as the ‘Pharmacy to the World,’ faces a significant threat as substandard Isopropyl Alcohol (IPA) and non-pharmacopoeia grade IPA from China flood the market.
The alarming trend not only endangers public health but also undermines India’s self-reliance journey and its global standing as a quality manufacturer of pharmaceutical products.
The critical solvent, especially in its pharmacopoeia-grade form, is essential for manufacturing safe and effective drugs and medical supplies. However, the growing influx of substandard and non-pharmacopoeia grade IPA, primarily from China, poses grave risks.
By FY 2023, Chinese imports accounted for 64% of India’s IPA supply, up from 57% in FY 2020. The use of this substandard material compromises the quality and safety of pharmaceutical products, threatening public health on a large scale.
“India’s reputation as a global provider of affordable, high-quality medicines is at stake,” said Vikas Biyani, an expert who has closely worked with the Food and Drug Administration.
“The use of non-pharmacopoeia grade IPA can severely compromise the efficacy and safety of life-saving drugs. With 75% of IPA consumption in India directed towards the pharmaceutical industry, ensuring the use of only quality IPA including pharmacopoeia grade IPA as per pharmaceutical industry requirement is crucial and a matter of public safety,” added Biyani.
The unchecked dumping of underpriced, substandard IPA from China is also a direct threat to India’s efforts toward Atmanirbhar Bharat (self-reliant India). As local producers struggle to compete with the flood of low-cost imports, India’s ability to maintain its current production capacities is at risk.
Expanding new domestic capacities may become financially unviable under current market conditions, potentially disrupting the country’s strategic objective of self-reliance on essential pharmaceutical supplies.
Biyani said, “India’s journey towards Atmanirbharta in the pharmaceutical sector is severely affected if the influx of substandard IPA and non-pharmacopoeia grade IPA continues unchecked. This will not only make public health suffer, but the long-term viability of India’s domestic pharmaceutical production could collapse, much like what happened with Penicillin-G in the early 2010s. That collapse led to a dependency on imports and exposed the sector to sharp price hikes and supply disruptions”.
In response to this critical issue, the Directorate General of Trade Remedies (DGTR) has made recommendations for the imposition of anti-dumping duties on Chinese IPA imports. Once implemented by the government, this positive step will provide crucial support to the domestic industry, helping stabilise prices, safeguard local jobs, and ensure the continued production of high-quality, safe pharmaceutical products.
“The DGTR’s recommendation for anti-dumping measures is a critical intervention,” stated Biyani.
“It will help to achieve Atmanirbharta in the pharmaceutical sector by ensuring the availability of quality inputs from domestic industry, reinforcing public health safety, and upholding our country’s position as a global leader in pharmaceuticals. Swift implementation by the government is essential to prevent long-term damage to the sector and to ensure that India continues to provide high-quality, affordable medicines to the world,” Biyani further mentioned.
As India strives to retain its leadership in global pharmaceutical exports, valued at INR 2.32 trillion in FY 2022-23, protecting the quality of all input materials including solvents is paramount. As per the press release, by supporting domestic industries and regulating substandard imports, India can ensure that its pharmaceutical sector remains resilient, globally competitive, and aligned with its Atmanirbhar Bharat vision.
