India reduces pharmaceutical import reliance on China

Indian companies have begun producing key pharmaceutical ingredients, including Penicillin G and Clavulanic Acid, under the government's production linked incentive (PLI) scheme. This initiative aims to reduce India's reliance on China for drug raw materials. The PLI scheme, launched in 2020, has led to the commissioning of 34 projects for 25 bulk drugs. Investments of approximately Rs. 4,200 crore have been made, with significant production capacities established for various essential drugs. The new production facilities are expected to save India substantial import costs, with Penicillin G alone projected to reduce imports by Rs. 2,700 crore annually. This development marks a shift towards greater self-sufficiency in the pharmaceutical sector.