India is still largely dependent on China for important raw materials used in the manufacturing of medicines. According to NITI Aayog’s ‘Trade Watch Quarterly Report’, the country’s pharmaceutical industry is dependent on imports from China by up to 65% for many essential raw materials and active pharmaceutical ingredients (APIs). The report was released on Tuesday.
Important revelations regarding pharmaceutical industry
NITI Aayog’s report has shared important data related to India’s pharmaceutical industry, global trade, import-export and energy sector. According to the report, despite being among the world’s largest drug producing countries, India remains largely dependent on China for many essential raw materials.
Lessons learned from the Middle East crisis
Releasing the report, NITI Aayog Vice Chairman Ashok Kumar Lahiri said that the recent Middle East crisis has made it clear that excessive dependence on any one country or region can create risks. He said that in times of global instability, it is very important to diversify the supply chain.
Various sources are also needed for energy needs.
Ashok Kumar Lahiri said that India should look at different countries and sources for the supply of oil, gas and other energy resources. They believe that if a situation like war, political crisis or supply disruption occurs in any area, alternative sources can help meet the country’s needs.
Focus on strengthening the supply chain
The report indicated that India needs to strengthen domestic production capacity to increase self-reliance in the pharmaceutical industry. Besides, the need to increase trade relations with new countries for import of raw materials has also been stated.
Analysis of import-export and energy sector also
The Trade Watch Quarterly Report also analyzes India’s overall import-export trends and the state of the energy sector. It highlights global market challenges, business opportunities and future strategies.
need for strategic preparation
Experts believe that in view of global geopolitical tensions and supply chain disruptions, India will have to expand import sources in strategic sectors like pharmaceuticals and energy. This will reduce the impact on the country’s economic and industrial activities in case of any international crisis.