Global de-risking of supply chain bodes well for Indian bulk drugs

An increase in demand for Active Pharmaceutical Ingredients (APIs) from India is a result of increasing customer diversification away from China, with some countries adopting a 'China plus one' policy.

The business strategy to avoid investing only in China and diversify business into other countries augurs well for Indian pharma, with the latter identifying and prioritizing production of 53 raw materials and APIs, and investment to the tune of $1.3 billion in domestic pharmaceutical producers.

The government has set in motion a series of initiatives including establishing pharma clusters, offering production-linked schemes and other related measures with a view to bolster India’s API-production capacity and turn India into a globally competitive API manufacturing hub.