Government of India and Republic of China are working to strengthen the business environment between the two countries under the Strategic Economic Dialogue (SED). Under the SED umbrella, Indian government has called for greater market access for pharmaceuticals.
Currently, China and India are the strongest in the pharmaceuticals market globally. The sluggish regulated markets of US and Europe have made the two largest economies in Asia to come together to focus on a long term strategic perspective.
In an age of open economy, collaboration, integration and cooperation are the cornerstones. This is where SED which has four working groups on infrastructure, energy, environment and high tech sectors that includes the pharmaceutical industry could converge for collaborative growth, stated Montek Singh Aluwalia, deputy chairman, Planning Commission in his visit to China early this month.
Commenting on the SED and strengths of India and China in pharmaceuticals, Dr Tarun Gupta, managing director, Joint Force Pharmaceuticals Limited, a trading company in Hong Kong told Pharmabiz that the two countries are showing a clear indication of interdependency. While India is sound in chemistry, China has its prowess in fermentation. But the biggest advantage for India is the availability of its qualified scientific English speaking pool which allow easy submission of documentation, along with a dependable quality standard in place because of stringent regulatory clearances.
China falls short here despite its impressive and large production volume capability. The dragon land has a long way to go in terms of regulations although its State Foods and Drugs Administration is now gearing up for strict rules and norms to be adhered. It will take a minimum seven years for China to catch up with India in document submission and in following regulations.
A visible trend in the since the global economic slowdown in latter half of 2009 is the manufacturing shift from Italy to China and India.
The two countries have the highest global population offering a market for all types of pharmaceuticals covering Active Pharmaceutical Ingredients (APIs), excipients and intermediates, finished dosage forms including generics. There is ample scope for India and China to tap the business but it would be better to collaborate and move ahead, added Gupta.
The business of pharma has been recession resistant primarily because healthcare is indispensable. Therefore there is great potential in reciprocal cooperation in pharmaceutical research and manufacture, said Rajeev Verma, general manager, materials, IndSwift Laboratories Ltd, a participant at the SIPP (Sino-Indo Partnership Programme) at the API Spring 2012 held at Hefei.
Incidentally Indswift imports a range of APIs from China. The big drawback for China is the poor English comprehension. But the large plants, availability of uninterrupted power supply and extensive government support in industrial development in China are no match to India. If the Union government does not speed up in its economic policies, China will catch up with India in about three to four years, informed Verma.
Since China is strong in making huge investments, India will need to pitch in for capital to drive the growth of its pharmaceutical industry, said Brian Xu, deputy general manager, Cdymax India Pharma Pvt. Ltd, the first Chinese company which invested in India at Bengaluru in 2009.
According to Jel Hernandez Benitez, head, importer and manufacturer of pharmaceuticals from Mexico, the emerging markets are showing promise in offering a range of quality and affordable APIs , excipients and intermediates. We now have direct access with customers instead of approaching agents as cost is driving most orders.