Indo China cooperation in pharmaceutical industry is finally happening after several years of allegations and accusations of dumping of APIs by Chinese pharmaceutical industry in India. Quality of most of the APIs and their low prices were the main objections of the Indian API industry against the Chinese materials in the past. Indian pharma industry had approached the Union commerce ministry several times in the past  to impose anti dumping duty against import of Rifa S, penicillin G, vitamin C, erythromycin, theofillin and many other drugs. Now, complaints of dumping of Chinese drugs are no more loud from the Indian drug companies. In fact, a need for co operation and collaboration in the pharmaceutical sector is what is being talked about by the Indian pharmaceutical industry. It is no secret that Chinese pharmaceutical companies dominate the global market in APIs.  Chinese pharmaceutical industry, numbering over 3000 manufacturers, produces mostly chemical based APIs, their intermediates and excepients at extremely competitive prices. Indian bulk drug and formulation units find importing APIs and intermediates from China is a better option than manufacturing them domestically. China is already a global leader in penicillin G, rifampicin, erythromycin, ciprofloxacin, norfloxacin and a number of other drugs. There are about 100 intenders from India who are regularly importing APIs and intermediates for the Indian drug industry. In fact, these Indian intenders seem to be strongly promoting Chinese drug materials in India.

The recent talks between the Indian Drug Manufacturers Association (IDMA) and Chinese Pharmaceutical Industry Association (CPIA) for cooperation between the pharma sectors of both the countries is a strong indication that Indo China trade in pharmaceuticals is set for a quantum jump. An IDMA delegation has been to Suzhou to sign MoU with CPIA in the second week of this month. The enhanced cooperation, however, is going to be mainly in the importation of APIs and intermediates. There is no chance for India to export formulations to China as some of the domestic companies are already planning to enter into formulation manufacturing on a big scale. Already over a hundred of capsule and glass bottle manufacturers are operating in various parts of China. There should be no doubt that Chinese can make formulations also quite cheap in the years to come  as they have successfully done in the case of APIs. A great advantage for Chinese producers is the easy availability and low costs of inputs like power, water and a disciplined labour. Huge scale of operation is another key factor keeping their cost of production very low. Indian government will not be able to offer all these in the near future to pharma industry here. What is to be remembered, then, is that a near total dependence on any country for basic materials of an industry  after closing down one’s own production facilities is not a right business or development strategy. A serious introspection on the future of Indian pharma industry is thus called for at the highest levels in the government.