Indian Pharma- export thrust leads to import dependence.

In the post-2000s period, India’s policymakers went on to promote an imbalanced growth of sales revenue in the case of large domestic pharmaceutical firms in an accelerated and highly skewed way. Large firms were allowed to grow by increasing their sales revenue through the expansion of pathways of low road to industrial development.  They were were allowed to produce and sell branded generics and combination products in the domestic market. Second, large firms were allowed to outsource production to small-scale firms for sale in the domestic market. Third, domestic firms supplied contract manufacturing and research services to foreign firms. Fourth, large firms were allowed to build strategic alliances and collaborations with other large firms of domestic and foreign origin. Fifth, trade was liberalised with a view to encourage exports embedded in imported active pharmaceutical ingredients. Consequently, there has been a rise in the number of large firms who do not undertake in-house manufacture of the core ingredient of the pharmaceutical formulations, or APIs, by themselves. That has made India dependent on China for key starting materials (KSMs), intermediates and APIs . 

The “success story” of the Indian pharmaceutical industry will be over when China enters the finished products market globally, which it is starting to.