Lok Sabha Question No. 223 (STARRED), answered on 2015-12-15
Subject: Pharmaceutical Hub
Ministry: CHEMICALS AND FERTILIZERS
Asked by: SUNIL BALIRAM GAIKWAD, KUNWAR HARIBANSH SINGH

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

## LOK SABHA

## STARRED QUESTION No. 223

## TO BE ANSWERED ON THE 15 th  December, 2015

## Pharmaceutical Hub

- *223. DR. SUNIL BALIRAM GAIKWAD: KUNWAR HARIBANSH SINGH:

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

- (a) whether the Government has assessed the demand and supply of the  Pharmaceutical  Active  Ingredients  from  indigenous  sources and imports including from China and if so, the details thereof;
- (b) whether  the  Government  proposes  to  promote  India  as  a Pharmaceutical  manufacturing  hub  and  set  up  an  Advanced Research  Centre  in  the  country,  if  so,  the  steps  taken/being taken  by  the  Government  in  this  regard  along  with  the  funds provided for the purpose;
- (c) whether the Government also proposes to launch a scheme for upgrading the Central and State Pharma/drug laboratories and if so, the details thereof;
- (d) the  details  of  the  Pharmaceutical  Parks  being  proposed  by  the Union Government; and
- (e) the policy initiatives taken/proposed by the Union Government to promote  pharmaceutical  manufacturing  in  the  country  in  sync with 'Make in India' concept?

## ANSWER

MINISTER IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI ANANTH KUMAR)

- (a) to (e):  A statement is laid on the Table of the House.

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## STATEMENT  REFFERED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF STARRED QUESTION NO. *223 FOR REPLY ON 15.12.2015

(a): The Government has not assessed the demand and supply of the Active  Pharmaceutical  Ingredients  (APIs)  as  the  market  data  relating  to production  is  not  available  as  the  market  is  divided  into  captive  and merchant  market  and  capacities  are  not  divulged  due  to  competitive reasons. However, Boston Consulting Group (BCG) in its report based on triangulating  data  from  various  sources  and  assuming  that  formulations consume approximately 40-45% API has stated that, the total production of  Active  Pharmaceutical  Ingredients  (APIs)  during  the  year  2013  was approximately US$ 10.4 billion, out of this API consumption in domestic market  was  approximately  US$  5.6  billion,  API  consumption  in  export formulations was  approximately  US$  3.9  billion, API exported  was approximately US$ 4.4 billion. Out of this, the shortfall was met through imports  of  approximately  US$  3.5  billion  as  per  Boston  Report.  About 60% of the imports were from China.

(b),  (d)  and  (e):  The  Government  had  constituted  an  Inter-Ministerial Committee headed by Secretary, Department of Health Research to look into the Bulk Drug/ API issues.  The Committee was mandated to carefully study  the  whole  issue  of  APIs  of  critical  importance  by  identifying important APIs and then working out a package of interventions/concessions required to build domestic production capabilities and examine the cost implications. The Committee has since submitted its recommendations.  The salient features of the same have been put up for comments in the public domain. The recommendations of the Committee are being examined in consultation with the stakeholders. Once  these  recommendations  are  implemented,  it  would  provide  a roadmap for the strengthening of the Bulk Drug/ API industry.

(c):  The  Department  of  Pharmaceuticals  at  present  does  not  have  any proposal for a scheme for upgrading the Central and State Pharma/Drug laboratories.

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