Lok Sabha Question No. 2298 (UNSTARRED), answered on 2022-07-29
Subject: Production and Export of Important Medicines
Ministry: CHEMICALS AND FERTILIZERS
Asked by: K. Subbarayan

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION No. 2298 TO BE ANSWERED ON THE 29 th  JULY, 2022

## Production and Export of Important Medicines

## 2298. SHRI SUBBARAYAN K.:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) whether it is a fact that the pharma sector in India is growing well and is a major producer and exporter of important medicines like antibiotics, antimalarial, anti-TB drugs, Paracetmol etc.;
- (b) if so, the details thereof along with the present position of India in the production and export of these medicines;
- (c) whether it is a fact that India was making 70 per cent of the active pharma ingredients (API) or bulk drugs by 1990, but a major part of these bulk drugs are presently being imported and mostly from China;
- (d) if so, the details thereof;
- (e) whether the Government has any plan to make inputs and intermediates for chemical and fertilizers based APIs in the country and therefor reduce the critical dependence on imported inputs for making medicines in the country; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI BHAGWANTH KHUBA)

(a) to (b): Yes, Sir. The Indian Pharmaceutical industry is the 3 rd largest in the world by volume. India  exported  pharmaceuticals  worth  Rs.  1,75,040  crore  in  the  financial  year  2021-22, including Bulk Drugs/ Drug Intermediates. The quantity and the value of the drugs exported during the last five years is as under: -

| Export of Drugs and Pharmaceuticals   | Export of Drugs and Pharmaceuticals   | Export of Drugs and Pharmaceuticals   |
|---------------------------------------|---------------------------------------|---------------------------------------|
|                                       | Quantity (MT)                         | Value (In Rs Cr)                      |
| 2017-18                               | 665934                                | 1,06,038                              |
| 2018-19                               | 674084                                | 1,28,028                              |
| 2019-20                               | 524757                                | 1,40,537                              |
| 2020-21                               | 642718                                | 1,74,064                              |
| 2021-22                               | 1075906                               | 1,75,040                              |

Source:

DGCIS, Ministry of Commerce and Industry.

(c) to (d):    India is one of the major producers of Active Pharma Ingredients (API) or bulk drugs in the world. India exported Bulk Drugs/ Drug Intermediates worth Rs. 33,320 crore in financial  year  2021-22.  However,  the  country  also  imports  various  Bulk  Drugs/  APIs  for producing medicines from various countries including China. Most of the imports of the Bulk Drug/APIs being done in the country are because of economic considerations and also, China is one of the largest producers of KSMs and APIs in the world.

The quantity and the value of Bulk Drug and Drug Intermediates exported from India to other countries and imported from other countries including China during the last three years is as under: -

|         | Export to all countries   | Export to all countries   | Imports from all countries   | Imports from all countries   | Imports from China   | Imports from China   |
|---------|---------------------------|---------------------------|------------------------------|------------------------------|----------------------|----------------------|
| Year    | Quantity (MT)             | Value (In Rs Cr)          | Quantity (MT)                | Value (In Rs Cr)             | Quantity (MT)        | Value (In Rs Cr)     |
| 2019-20 | 271544                    | 27533                     | 364433                       | 24172                        | 220875               | 16443                |
| 2020-21 | 324331                    | 32857                     | 390476                       | 28529                        | 256609               | 19403                |
| 2021-22 | 453130                    | 33320                     | 400642                       | 35249                        | 264582               | 23273                |

(e) to (f):   The Government strives to minimize country's dependence on imports and to give fillip to indigenous manufacturing. In order to make the country self-reliant in APIs and drug intermediates,  the  Department  of  Pharmaceuticals  is  implementing  the  following  three schemes: -

- (i) The  Production  Linked  Incentive  (PLI)  Scheme  for  promotion  of  domestic manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India, with a financial outlay of Rs. 6,940 crores and the tenure from FY 2020-2021 to FY 2029-30, provides for financial incentive for 41 identified products. A total of 51 applicants have been selected under the scheme.
- (ii) The  Production  Linked  Incentive  Scheme  for  Pharmaceuticals,  with  a  financial outlay  Rs.  15,000  crores  and  the  tenure  from  FY  2020-  2021  to  FY  2028-29, provides  for  financial  incentive  to  55  selected  applicants  for  manufacturing  of identified products under three categories for a period of six years.  The eligible drugs under this scheme include APIs.
- (iii) The Scheme for Promotion of Bulk Drug Parks, with a financial outlay of Rs. 3,000 crores and the tenure from FY 2020-2021 to FY 2024-25, provides for financial assistance to three States for establishing Bulk Drug Parks.

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