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India is net exporter of bulk drugs in FY24, but the country continues to be dependent on imports for many antibiotic active pharmaceutical ingredients (APIs) manufactured through fermentation, the Economic Survey 2023-24 notes.
India’s import dependency of APIs are largely due to a lack of cost-effective options in domestic API manufacturing compared with imports, the Survey noted.
During FY24, the value of export bulk drugs was ₹39,632 crore and imports were to the tune of ₹37,722 crore, respectively.
The CAGR of import of bulk drugs between FY22 and FY24 was 2.3 per cent, compared with the CAGR of 5.9 per cent in their export.
The Economic Survey notes that PLI schemes for bulk drugs and pharmaceuticals have helped stabilise the import of bulk drugs and improved the supply chain resilience. Under the scheme, fermentation based manufacturing capabilities got strengthened through production of antibiotics such as Penicillin G and Clavulanic Acid.
PLI scheme
The PLI scheme for bulk drugs has approved 48 projects with a committed investment of ₹3,938.6 crore to bolster local manufacturing.
The Survey noted that export growth occurred due to consistent innovation in the last 5-6 decades. The export growth can be sustained by increasing the capabilities in biopharmaceuticals manufacturing.
India at present has around 60,000 generic brands across 60 therapeutic categories accounting for 20 per cent global generic drug exports by volume.
Pharma exports (overall) were valued at ₹2,19,439 crore in FY24 and the industry is expected to reach a value of $130 billion by 2030.
“The next leg of growth in pharma necessitates skill advancement, the use of innovation and technology and the establishment of a strong supply chain,” it noted.
The PLI scheme for medical devices has also garnered “positive impetus” and has narrowed down the gap between export and import of medical devices. Production of several medical devices such as CT-Scan machines, Linear Accelerator (LINAC), Rotational Cobalt Machine, C-Arm, MRI, etc has started in the country.
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