While India’s reliance on China as a supplier of APIs is well documented, its dependence on the same country for supply of KSMs and drug intermediates is less so.
Dr. Kumar at Ipca asserts that reducing imports of KSMs and intermediates from China and replacing them with locally made products is just as important as doing so for APIs.
“Firstly, over-dependence on China can be a killer if China stops supplies to India, but more importantly if we want to become ‘Atmanirbhar’ there is no other choice than to build the required support system to sustain, not only in adverse situations, but also otherwise.”
Singh at Centrient agrees, arguing that a reduction in reliance is crucial in that control over the value chain will ultimately maintain the reliability of the overall supply chain, while “integration will strengthen the cost competitive and delivery muscle of industry.”
He describes India’s dependence on China for supply of basic intermediates for APIs such as penicillin and statin intermediates as “a severe threat to Indian health security” and adds that reducing this will be beneficial in that it will lower the business risk emanating from the often taut political situation between the two countries over border issues.