The import of bulk drugs from China to India has seen a significant rise, increasing from 62% to 75% over the past nine years. Despite various efforts by the Indian government to promote domestic manufacturing through projects like the production-linked incentive scheme, the country remains reliant on Chinese shipments. According to a report by Care Ratings, the imports of bulk drugs from China have grown both in terms of value and volume, reaching 71% and 75% respectively in FY23, up from 64% and 62% in FY14. This growth indicates a continued dependence on China for critical key starting materials (KSMs) in the pharmaceutical industry.
The value of India’s total bulk drug imports from China has increased at an annual growth rate of around 7% from FY14 to FY23. Despite the overall growth of the domestic pharmaceutical industry, which has reached a market size of approximately $49.8 billion in FY23 with an annual growth rate of 7%, bulk drug imports have maintained a steady annualised growth rate of about 7% as well, indicating a sustained reliance on foreign sources.
As reported by ZEEBUSINESS, almost one-third of the bulk drugs manufactured in India are exported, while the remaining two-thirds are used domestically. India plays a significant role in the global supply of generic drugs, accounting for about 20% of the global supply. The country ranks as the third-largest in terms of volume and the 14th largest in terms of value in the pharmaceutical industry. However, this position as a major generic drug supplier also means there is a substantial demand for bulk drugs.
While India boasts over 3,000 bulk drug manufacturers, a large proportion of them are small, unorganised players contributing 50-60% of the total share. Importantly, China makes up approximately 43% of India’s total pharmaceutical imports, primarily serving as the main source of bulk drugs for the industry. This reliance on China for bulk drugs poses significant concerns, particularly for life-saving medications, where the dependency on key starting materials surpasses 50%. This situation raises valid worries about the availability, cost, and uninterrupted supply of critical medicines.
