India imports about 70% of its API, many of them for essential medicines
India was not dependent on China alone before 1985 (though, India was importing API from other countries also.) The rest of the world after 1985, transferred nearly the entire production of APIs to China, where non-unionized and cheap labor was available and where the local governments offered all the facilities, that might have been required by the business men of the west, who wanted higher profits for their companies. By 2013, many academicians, political leaders and businesses started understanding the lop-sided supply chains and had started thinking about China plus one policy, whereby another reliable source for APIs may be developed. Regarding India as the alternative source, research has shown that, on an average, prices of APIs produced in India may be about 20-30 % higher, due to higher rates of electricity, poorer infrastructure and issues of efficiency. GOI and the businesses in India have to work to address the issues, while India may begin aggressively for those niche areas, for which APIs, produced in India may not be costlier, even today. Please refer to: (tinyurl.com/yckfhh9u)