-Nitin Sindhu VY
India is often called the "pharmacy of the world," supplying cheap medicines globally. But behind this success lies a troubling truth—our pharma industry depends heavily on China and lacks real innovation.
The Problem: Copying, Not Creating
- India makes 20% of the world’s generic drugs (copies of existing medicines).
- We supply 40% of America’s generic drugs and 25% of the UK’s medicines.
- But generics require little research—just copying what others invented.
The Shocking Reality: India’s Dependence on China
Even for the drugs we make, China controls our supply chain:
- 80-100% of key ingredients (APIs) for essential medicines come from China.
- Even when we make APIs in India, 60-90% of raw materials (KSMs) still come from China.
- This costs India $ 7 billion yearly—a dangerous reliance on a rival nation.
India vs. The World: Falling Behind
- The US imports $ 200 billion in drugs yearly—but India’s share is just $ 10 billion (mostly generics).
- Singapore, a tiny city-state, exports $15 billion in pharma to the US—50% more than India!
Why This Is Dangerous
- If China cuts supplies, India’s drug production could collapse.
- We lack innovation—no new drugs, just cheap copies.
- Government schemes (like PLI for local API production) are struggling because China keeps prices artificially low.
What India Must Do
1. Invest in R&D – Stop copying, start inventing new medicines.
2. Make Our Own Raw Materials – Reduce dependence on China.
3. Support Innovation – Policies should reward research, not just cheap production.
The Bottom Line
India’s pharma industry is big, but not strong. Without change, we’ll remain a copycat giant—dependent, not dominant.
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