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India needs holistic ecosystem to rebuild its API industry: PwC Study

India, in the short term, should focus on providing production incentives for critical active pharmaceutical ingredient (API) to encourage investments to achieve self sufficiency in API manufacturing, PwC India said in a study called “Reviving India’s API industry”.

Besides, India should provide subsidies in form of cheaper utilities like power and water, faster environment clearances and facilitate alternative sources of imports, it added.

It said the country needs a holistic and conducive ecosystem to rebuild its API manufacturing capabilities.

From a long term perspective, India needs to develop two to three large clusters and provide plug-and-play infrastructural support in dedicated zones for manufacturing APIs and encourage industry-academia initiatives, the study said.

Sujay Shetty, partner and leader, health industries, PwC India, said, “High dependence on a single source can have a significant adverse impact in emergency situations like COVID-19. With recent changes in API’s prices rising up to 100%, it is time we revive our domestic API industry. While some policy changes may take time, we need to collectively evaluate and strategise for ways to encourage alternative sources.”

The PwC India study highlights measures to deal with issues of drug shortages in the wake of supply chain disruptions caused by COVID- 19.

It said the Chinese API industry has a clear inherent advantage because of economies of scale and the support they receive in the form of large-scale manufacturing incentives and state-driven subsidies to promote exports.

On the other hand, Indian manufacturers are stressed due to multiple reasons like the stricter implementation of pollution control norms, issues in the interpretation of the Drug Price Control Order (DPCO), no financial incentive, and lack of large-scale mega parks to manufacture bulk drugs, it added. – The Hindu

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