The government’s delay in coming up with a policy that provides incentives to boost local manufacturing of bulk drugs could jeopardize a potential opportunity that’s opening-up due to the rising cost of Chinese active pharmaceutical ingredients (APIs) and intermediates.
The government, in its Draft Pharmaceutical Policy – 2017, had proposed several incentives to encourage local industries to take up the manufacture of bulk drugs. This included giving preference to the formulations produced from indigenously produced APIs in government procurements and taking them out of price control for five years.
The government spoke about imposing peak duties on API imports which can be indigenously manufactured. Additionally, the government said it will support and create an enabling environment to set up mega bulk drug parks having common facilities for pollution control, effluent treatment, and single environmental clearance.