India’s Bulk Drugs Incentive Scheme Finds First Takers

FDI Potential Of Bulk Drugs Parks Hazy

 
• By Vibha Ravi
  
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As India revealed finer details of two schemes to promote bulk drug production, Mankind Pharma and Aarti Drugs spelled out a preference for chemical synthesis products – they are likely to be joined by more companies reluctant to invest in some that are fermentation-based. Whether a “plug and play” format for bulk drug parks will attract foreign investment remains to be seen..

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The Indian government unveiled on 27 July detailed guidelines for twin schemes aimed at driving investments in bulk drug production in the country, against a backdrop of rising drug nationalism and a need to reduce raw materials dependency on China after COVID-19 disruption. The INR69.4bn ($928m) scheme, providing incentives for 41 key starting materials (KSMs), drug intermediates (DIs) and active pharmaceutical ingredients (APIs), and a separate program on setting up of three bulk drug plants entailing a INR30bn investment, were first proposed in March.

P D Vaghela, secretary, Department of Pharmaceuticals (DoP), said India planed to attract foreign direct investment (FDI) through these schemes....

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