India's continued import dependence on bulk drugs draws concern

India’s domestic pharmaceutical market is estimated at $42 billion in 2021 and likely to reach $65 billion by 2024 and further expand to reach $120-130 billion by 2030, according to India's Economic Survey.

The document that details the state of the economy ahead of the government's budget for the fiscal year beginning April 1, 2022, however, drew attention to India's continued import dependence on bulk drugs.

The survey noted that although price competitiveness and good quality have enabled homegrown drug producers to be dominant players in the world market, thereby making India the 'Pharmacy of the World', the country continues to be significantly dependent on the import of bulk drugs that are used in the formulation of medicines.

This issue of import dependence for critical bulk drugs was examined by a high-level committee, and a composite set of actions to incentivise bulk drug production have been initiated by the government. Steps include a scheme for the promotion of bulk drug parks that envisages the creation of world-class common infrastructure facilities; a production-linked incentive (PLI) scheme for bulk drugs and another PLI for pharmaceuticals.

The National Pharmaceutical Pricing Authority (NPPA) has taken steps to regulate drug prices. The ceiling prices of 355 medicines and 886 formulations were fixed for drugs under the National List of Essential Medicines.

Retail prices for around 1,798 formulations were fixed under the Drugs Prices Control Order (DPCO), 2013, till December 31, 2021. The NPPA also capped the trade margin up to 30% on select 42 anti-cancer non-schedule medicine on a pilot basis in February 2019, added the survey.