New Delhi : Imports of medicinal and pharmaceutical products from China to the country have seen a growth of 23 per cent during the first nine months of the current fiscal year to $1.76 billion compared to the same period of last year. The Chinese imports of pharmaceutical products has reported a growth of 27.2 per cent in over six years, from 2014-15 to 2020-21.
According to the data from the Ministry of Commerce and Industry, the Chinese imports of the commodity group between April to September, 2021 was at $1.76 billion, as compared to $1.43 billion during the same period of 2020. The total import from China, in 31 major commodity groups including organic and inorganic chemicals, chemical materials, iron and steel, among others, grew 54.7 per cent to $42.33 billion during the nine month period, as compared to $27.37 billion during the same period last year.
The imports have been reporting a gradual growth, from $2.28 billion in 2014-15, to $ 2.9 billion during the fiscal year 2020-21. However, there was a slight dip of 2.7 per cent in imports in 2019-20 when it was reported at $2.56 billion compared to $2.63 billion in the previous year. The imports from China, across the commodity groups, have increased from $60.41 billion in 2014-15 to $65.21 billion in 2020-21, exhibiting an increase of 7.49 per cent over six years.
The imports, later reported a higher growth during the year when pandemic has hit the globe and resulted in panic and higher demand for drugs during the year 2020-21. The growth was in double digits, at 13.3 per cent from $2.56 billion in 2019-20 to $2.9 billion in 2020-21. The exports from India to China, during the same period, have grown from $11.96 billion in 2014-15 to $21.19 billion in 2020-21, exhibiting an increase of 77.17 per cent, says the Ministry.
It may be noted that during the year 2020-21, India has also reported one of the highest growth in eight years, in terms of exports of drugs and pharmaceuticals. According to Pharmexcil, the year 2020-21 saw an exceptional growth of 18.19 per cent in exports, to $24.4 billion, driven by the higher demand of medicines and stockpiling in anticipation of higher demand owing to the Covid-19 pandemic.
Mansukh Mandaviya, Minister of Chemicals and Fertilisers, said in Parliament that many raw materials are imported from China form manufacturing of medicines and out of the total value of import of Rs 28,528.97 crore, almost 68.01 per cent, at Rs 19,402.60 crore value of imports were from China during the year 2020-21. During the year 201-20, the percentage of import from China was almost the same at 68.02 per cent at Rs 16,443.10 crore out of the total Rs 24,171.78 crore of imports, while it 2018-19, it was around 67.5 per cent, at Rs 16,777.43 crore out of Rs 24,850.07 crore of imports.
“Most of the imports of the Bulk Drug/APIs being done in the country are because of economic considerations,” said the Minister. “As per the data available from port offices of CDSCO (Central Drugs Standard Control Organisation), the imports from China include Antibiotics, Vitamins, Hormones, Antiviral, Anti-TB, Anticonvulsant, Analgesic, Antipyretic, Antidiabetic, Cardiovascular etc.,” he added.
The Government of India has made sustained efforts to achieve a more balanced trade with China including bilateral engagements to address the non-tariff barriers on Indian exports to China. The Government has also launched schemes such as Production Linked Incentive Schemes (PLIs) to promote domestic manufacturing capacities in critical sectors like Key Starting Materials/Drug Intermediates and Active Pharmaceutical Ingredients (APIs) in India with a total financial outlay of Rs 6,940 crore; another PLI scheme for pharmaceuticals with a total financial outlay of Rs 15,000 crore for a tenure from FY 2020-21 to 2028-29; and a scheme for promotion of bulk drug parks with a total financial outlay of Rs 3000 crore with a tenure from FY 2020-21 to FY 2024-25.
