The Indian government's unending search for an alternative to end the over-dependence of Indian pharmaceutical companies on China for APIs has come a full circle as the Union Chemicals Ministry has proposed to the Indian API companies to shift a sizeable part of their API manufacturing capacity to Uzbekistan to boost India’s bulk drug production. Union Minister of State for Chemicals and Fertilisers Mansukh Mandaviya recently held a meeting with the country's top bulk drug manufacturers to discuss the proposal. According to the information shared by the minister, the Uzbekistan government has come out with a tempting investment proposal. In exchange for Indian technical expertise, the former Soviet Republic is offering incentives including free land, 10-year tax holiday, faster environmental clearances and subsidised power and water. According to information, the government is in favour of the proposal and keen on shifting up to 200 API units to Uzbekistan in the initial phase. And Uzbekistan is not alone in its bid to woo investors and develop API industry. Bangladesh has also come out with a slew of measures to boost the sector.
Naturally, the Indian government's policy shift from 'Make In India' to 'Make In Uzbekistan' is being opposed tooth and nail by the domestic API industry which has stated that it is none of the business of the government to tell the private industries to look out for opportunities outside the country. The industry is of the view that the new proposal would eventually backfire on the domestic industry. They argue that the government is considering a counter-productive offer. The industry's apprehension is quite palpable as the government’s readiness to embrace the Uzbek offer will have serious long-term implications as increased dependence on import of APIs from China is currently raising national security concerns. The government wanted to end the over-dependence of Indian pharma companies on China for APIs due to the ever deteriorating Sino-Indian border relations. If the ongoing border skirmishes reach a flashpoint and as a retaliatory measure China decides to stop export of APIs and other raw materials to India, the result would be disastrous for the country as the industry does not have any alternate sources to procure these basic raw materials. This would mean that production of several essential and life-saving drugs required within the country will be in trouble. But, the government's Uzbek proposal is not a wise alternative as, in future, the same thing, border or other skirmishes, may happen with any other country, be it Uzbekistan or Bangladesh. So, instead of making such specious proposals, the government should concentrate on providing a conducive regulatory environment for the API industry to grow in the domestic turf. It should be left to the individual companies to exploit the opportunities outside the country. After all, what all these companies are asking for is the same set of offers here in the country like faster environmental clearances, tax holidays and subsidised power and water. The government should urgently come out with some policy initiatives to remove the anomalies in the current regulatory framework to boost the domestic production of APIs, as several precious years have already wasted on the issue.