Lok Sabha Question No. 1959 (UNSTARRED), answered on 2016-11-28
Subject: Commercial Relations with China
Ministry: COMMERCE AND INDUSTRY
Asked by: JAY PRAKASH NARAYAN YADAV

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1959(H) TO BE ANSWERED ON 28 th  NOVEMBER, 2016

## COMMERCIAL RELATIONS WITH CHINA

## 1959(H). SHRI JAI PRAKASH NARAYAN YADAV:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether the sale of imported items from China is proposed to be banned in the country and if so, the reasons therefor;
- (b) whether  the  Government  also  proposes  to  discontinue  the  commercial  relations  with China in near future and if so, the reasons therefor;
- (c) whether a considerable percentage of the raw material used in the manufacturing of the life saving medicines in our country is imported from China alone; and
- (d) if  so,  whether  the  Government  has  made  alternative  arrangements  from  any  other country in this regard and if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a) & (b):No Madam. India and China are members of the World Trade Organisation (WTO) and therefore any restriction  imposed on  trade needs to be WTO compliant.  Therefore, no blanket  ban  can  be  imposed  on  Chinaor  any  other  Member  Country  under  the  WTO framework.

(c )& (d): Most of the intermediates and Key Starting Materials (KSM) are imported to manufacture  Active Pharmaceutical  ingredients  (APIs)  in  India.  Some  of  the  APIs  (Bulk Drugs) are also imported from China to manufacture some finished formulations including the life saving drugs.

Following are the total imports of Bulk Drugs of India during the years 2012-15 and AprilDec 2015-16.

| Bulk Drug Imports of India in US$ Million   | Bulk Drug Imports of India in US$ Million   | Bulk Drug Imports of India in US$ Million   | Bulk Drug Imports of India in US$ Million   | Bulk Drug Imports of India in US$ Million   |
|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|
|                                             | 2012-13                                     | 2013-14                                     | 2014-15                                     | 2015-16                                     |
| Total Imports                               | 3189.671                                    | 3146.76                                     | 3245.642                                    | 2510.413                                    |
| Imports from China                          | 2009.88                                     | 2000.394                                    | 2088.307                                    | 1626.875                                    |
| %of Imports from China                      | 63.01                                       | 63.57                                       | 64.34                                       | 64.81                                       |

(Source: Pharmexcil)

Efforts are being made for revival of API industry in India to lessen dependency on import of Key  Starting  Materials  (KSM),  Intermediates  and  APIs  (Bulk  Drugs)  including  from China. The  government  has  withdrawn  exemption  of  custom  duty  on  certain  categories  of Bulk Drugs/APIs to promote domestic manufacturer. Further, the government is addressing bottlenecks  which  the  manufacturers  are  facing  such  as  providing  speedy  environmental clearance in order to give a boost to domestic manufacture of bulk drugs.

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