India plans to set up a US$ 1.3 billion fund to boost the manufacture of pharmaceutical ingredients domestically.
How so, since India is already a big pharma player? For example, India supplies about 20% of the world’s generic drugs and is the world’s largest exporter.
Well, in pharma as in everything else in life, all things are connected.
You see, India’s supply chain was disrupted due to the coronavirus pandemic – exposing the country’s dependence on China.
Here’s where “we are all connected” comes in – India is indeed a global leader in pharma but it imports almost 70 per cent of its active pharmaceutical ingredients, the chemicals that make a finished drug work, from China.
Which part of China provides the ingredients? Hubei province, the epicenter of the coronavirus outbreak has been major source of these ingredients.
The new program consists of spending on infrastructure for drug manufacturing centers and financial incentives of up to 20 per cent of incremental sales value over the next eight years, according to a government statement.