Indian pharma 65 pc reliant on China
New Delhi: India's pharmaceutical industry continues to rely heavily on China for critical raw materials, with nearly 65 per cent of its requirements for active
New Delhi: India's pharmaceutical industry continues to rely heavily on China for critical raw materials, with nearly 65 per cent of its requirements for active pharmaceutical ingredients (APIs), key starting materials (KSMs), and intermediates being sourced from the neighbouring country, according to NITI Aayog.In the eighth edition of its Trade Watch Quarterly report released on Tuesday, the government think tank highlighted persistent supply chain vulnerabilities in the sector, particularly in fermentation-based products, while also flagging rising environmental compliance costs that are increasing manufacturing and research expenses for domestic drugmakers.The report stated that India's pharmaceutical ecosystem faces challenges beyond supply chains, including a weak innovation and commercialisation framework that has created uncertainty for innovators and discouraged long-term investments.Also Read:Central Drugs Laboratories find 46 drug samples not of standard quality for MayAddressing these issues, NITI Aayog recommended greater diversification into high-value pharmaceutical segments and stronger collaboration between industry and academia to accelerate research commercialisation and startup growth.It also called for enhanced regulatory transparency and the development of robust life sciences clusters to improve technology transfer, foster research partnerships and boost patent commercialisation.Speaking at the report's release, NITI Aayog Vice Chairman Ashok Kumar Lahiri said that while India has established itself as the "pharmacy of the world"."NITI Aayog has found out that while we are doing all right in terms of volume in pharmaceutical sector, we need to move up the value chain," Lahiri said.Also Read: Aurobindo Pharma US gets FTC nod for $250 million acquisition of Lannett CompanyHe said that India has credibility in international markets and if Indian pharmaceutical companies can develop high-quality, reasonably priced branded products, there is no reason they cannot capture a larger share of global markets.India remains one of the world's largest suppliers of affordable generic medicines, meeting around 50 per cent of Africa's generic drug demand, 40 per cent of that in the United States and 25 per cent in the United Kingdom.According to the report, global demand for drugs and pharmaceuticals reached USD 1.3 trillion in 2025, including USD 1.02 trillion worth of pharmaceuticals and USD 261 billion in APIs.The report also provided a broader snapshot of India's trade performance.
Total trade expanded 5.4 per cent year-on-year in the fourth quarter of FY26 to USD 1.84 trillion. Merchandise exports declined 2.8 per cent to USD
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