India APIs Incentive Scheme: Will It Galvanize Local Firms, Bridle The Dragon?
Aims To Improve Self-Sufficiency
India shapes new production-linked incentives scheme for critical APIs to ensure self-reliance and cut massive dependence on imports from China, but much will depend on actual implementation, including timely clearances. Pharma will also need to 'walk the talk' alongside.
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White House directive aimed at reducing dependence on foreign manufacturers for essential medicines and a seemingly more aggressive stance towards site inspections could signal a worrying emerging trend for India pharma. But it also needs to be viewed through the prism of the upcoming US elections and trade tensions with China amid the pandemic.
Companies including Dr Reddy’s will consider investing in new API units if the Indian government tweaks its incentive scheme to permit exports of surplus production. Other suggested changes to the $1.3bn stimulus, aimed at enhancing the country's medicines security, include extending incentives to brownfield expansions and removing restrictions on a change in product mix.