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The Pharmaceuticals Export Promotion Council of India (Pharmexcil) along with national research institutes are drawing up plans to reduce the dependence on China and Italy for import of active pharmaceutical ingredients (APIs) and intermediates, according to the Director-General of Pharmexcil, R. Uday Bhaskar.
“India is largely dependent on China for API imports. Until recently, China used to sell APIs at lower prices due to their lower labour costs. The profit margin on APIs used to be low and Indian drug manufacturers thought it wise to import APIs, make formulation drugs and export them,” Uday Bhaskar said in an interview. He was here to participate in a seminar on “Shifting pharma industry from Schedule-M to WHO-GMP compliance” here on Friday.
He said China had also increased API prices as labour costs had gone up in that country. "This is the right opportunity for India to develop APIs and intermediates. China has started purchasing APIs from India and concentrating on manufacture of formulation drugs. All countries are thinking of reducing their healthcare expenditure. These nations are looking towards India and China for the supply of drugs at lower prices,” he said.
He said India was the leader in the manufacture of generic drugs, with eight of the top 20 global generic drug manufacturers being Indian. "This gives India an advantage in the supply of generics to the world. India occupies the third place by volume and tenth place by value in pharma exports. Over 50 per cent of our exports are to highly regulated markets such as the US and Europe," he added.
On the role of Pharmexcil in the promotion of exports, Bhaskar said the main objective of the council was to promote pharma exports by acting as a facilitator between Indian and foreign manufacturers and the respective governments by extending incentives, concessions and providing a platform for Indian exporters to display their products at international exhibitions.
The council would recommend to the Ministry of Commerce and Industry the need to set up exclusive clusters for the manufacture of basic chemicals and intermediates at various places in the country to meet the growing demand.
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