Although the rate of increase in imports has already begun to drop, it will take some time for India’s reliance on imports from China to be reduced for Active Pharmaceutical Ingredients (APIs) and intermediates used in the production of medicines. The country’s production of several important bulk pharmaceuticals (APIs) has grown thanks to the Production Linked Incentive (PLI) plan, although experts in the field predict that it may take 5-7 years before consumers notice a change.

The Pharmaceutical Export Promotion Council (Pharmexil) reported that India imported APIs and intermediates from China worth $ 3.18 billion in 2022–2023, an increase of 1.74 percent over the previous year. India imported Chinese APIs and intermediates worth $3.12 billion in 2021–22, a 19.5% increase from 2020–21. In this sense, imports are still occurring, but the rate of growth has drastically decreased.

The import of bulk pharmaceuticals and intermediates into India, on the other hand, fell by 4.54 percent to merely 4.5 billion dollars. As a result, imports rose by roughly 23% to $4.7 billion in the previous fiscal year. The actual impact of increasing the production capacity of bulk drugs due to the PLI scheme will be visible after a few years.

India has been making significant attempts to expand domestic manufacturing and decrease reliance on API and KSM imports from China. The strategy is starting to show effects, but it will take 5-7 years to lessen total dependency. Only when there is variety in the supply can there be good healthcare security.

However, the indigenous pharmaceutical business claims that just a few items are being imported less often. Before the PLI plan, only one facility was generating para amino phenol, which is used to make paracetamol, according to Viranchi Shah, president of the Indian Drug Manufacturers Association (IDMA), which represents small and medium pharmaceutical enterprises. They relied heavily on China to provide them with this crucial medication, which was widely utilized during the Covid epidemic. But at least three to four facilities now produce para amino phenol.

It is evident that Made in India is highly valued in the drug industry. PLI could have an effect, but analysts predict that it will be able to accomplish its goals in 5 to 7 years. Under the PLI initiative, 51 projects for 34 bulk medicines were chosen, with 22 schemes having processing capacities greater than 33,000 tonnes and several now in the planning stages.