India is recognized as the pharmacy of the world for its massive production capacities of both generic drugs and vaccines, India is depending on China for half of its API needs.

Indian pharmaceutical companies are seeking local makers of Active Pharmaceutical Ingredients (API) or trying to produce them in-house to end their dependency on China as relations between the two countries soured after a deadly border clash.

All About API

Active Pharmaceutical Ingredient is any substance or combination of substance used in Finished Pharmaceutical Product intended to furnish Pharmacological Activity or have direct effect in the diagnosis, cure, mitigation, treatment, prevention of disease.

Raw Materials are the Chemical compound that is used as a base to make API. API is not made by only one reaction from raw material but involves several other chemical compounds. These chemical compounds which are in process of becoming API are called Intermediate. The quality of API should be ultrapure to meet the strict quality criteria of medicine. Medicines are made by mixing pharmaceutical excipients and API’s.

Executives of India's Cadila Healthcare, Cipla, Sun Pharmaceutical, and Biocon said, "they are aggressively working on reducing the dependence on the rival country for raw material. Interruption to supplies from China due to Covid 19 pandemic is also one of the reasons.”

Last year during lockdown many of the Indian pharmaceutical companies had to face difficulties in buying ingredients to make important drugs to be sold all over the world.

“Because of the anti-China sentiments, most of the companies are working towards de-risking themselves in terms of making it clear that their supply chain linkages with China are limited,” Gaurav Suchak, supply head of Cadila.