Overview
- The Trade Watch Quarterly, published June 23, 2026, found roughly 65% of critical active pharmaceutical ingredients, key starting materials and intermediates were imported from China, creating a clear supply‑chain vulnerability for Indian manufacturers.
- NITI Aayog reported India’s global export share in pharmaceuticals and APIs is modest at about 2.8%, with exports near $35.8 billion in 2025 despite India supplying large volumes of low‑cost generics to markets such as Africa, the United States and the UK.
- The report cited low R&D intensity — Indian firms spend about 7% of net sales on R&D versus 15–20% for global peers — and noted repeated pre‑grant patent oppositions and weak industry–academia technology transfer that deter long‑term investment in novel drugs.
- Rising environmental compliance costs from stricter CPCB rules, zero‑liquid‑discharge and effluent treatment requirements are squeezing margins and the report recommends shared eco‑friendly bulk‑drug parks to lower costs and meet export sustainability rules.
- To reduce dependence and boost higher‑value exports, NITI Aayog proposed time‑bound patent‑opposition timelines, incentives and infrastructure for biologics, stronger research linkages, and a model pharmaceutical chapter for future free‑trade agreements to improve regulatory predictability.