New Delhi, Aug 4 (IANS): The contribution of bulk drug imports from China has increased in terms of value and volume from 64 per cent and 62 dper centuring FY14 to 71 per cent and 75 per cent during FY23, respectively, CareEdge Ratings said.
In terms of value, during FY14 to FY23, the total bulk drug imports increased at a CAGR of about 7 per cent as against 9 per cent from China.
When it comes to bulk drugs, a substantial dependency on a single country -- China, raises concerns due to existing geopolitical tensions, the report said.
China accounts for approximately 43 per cent of the total pharma imports in India, making it the primary source of bulk drugs for the country's pharmaceutical industry.
While imports of other pharmaceutical products are diversified across multiple countries, the reliance on China for bulk drugs stands out as a critical point of vulnerability.
The contribution of bulk drug imports from China has exhibited significant growth in both value and volume terms, increasing from 64 per cent and 62 per cent during FY14 to 71 per cent and 75 per cent during FY23, respectively.
Notably, the total bulk drug imports have grown at a CAGR of about 7 per cent in terms of value from FY14 to FY23, compared to a higher CAGR of 9 per cent from China over the same period, the report said.
The implications of such reliance on China for bulk drugs are far-reaching, particularly for life-saving drugs, where the dependency on Key Starting Materials (KSM) from China exceeds 50 per cent. This situation raises legitimate concerns about the availability, cost, and uninterrupted supply of crucial medicines in India's healthcare landscape, the report said.
India continues to rely heavily (>50 per cent) on some of the critical KSM from China.
Commissioning of bulk drug projects under the production-linked incentive (PLI) scheme along with backward integration projects undertaken by various Indian companies is expected to play a critical role in reducing our dependence on China to an extent, the report said.