Indian drug industry exhorted to take advantage of the 'China Plus One' strategy

As the COVID-19 pandemic has prompted multinational pharma corporations to adopt a ‘China Plus One’ strategy, Indian government officials are urging domestic players to take advantage of the opportunity to become a viable alternative to China. Since the production linked incentive (PLI) scheme was introduced, 32 plants in India have already begun producing 35 active pharmaceutical ingredients (APIs), which officials say will reduce India's dependence on China by 35% before the end of the decade, reports The Pharma Letter’s India correspondent.

At a recent meeting between government officials and big pharma companies, it was stated that developing a de-risked supply chain is vital for global companies and from a lower cost sourcing perspective, India continued to present a significant advantage for global firms.

Domestic pharma majors were told they could contribute to making the country a global hub for low-cost manufacturing and R&D, but a supply chain transformation would be needed along the way.