India's imports of bulk drugs and drug intermediates registered a 2.34% growth during the first nine months of FY25 to $3.5 billion from $3.42 billion during the corresponding period of FY24. The December 2024 quarter witnessed a marginal growth of 1.6%, with imports at $1.21 billion from $1.19 billion in the same quarter last year, as per Ministry of Commerce and Industry data.

Key Points of India's Bulk Drug Imports
Total Imports (April - December 2024):
$3.5 billion, an increase of 2.34% from $3.42 billion in FY24.Imports in Q3 FY25:
$1.21 billion, an increase of 1.6% from $1.19 billion during the same quarter of FY24.

Quantity Imported (April - December 2024):
3.6 lakh metric tonnes, an increase of 8.4% from 3.32 lakh metric tonnes in FY24.Imports in Q3 FY25 (Quantity):
1.14 lakh metric tonnes, a rise of 7.5% from 1.06 lakh metric tonnes in FY24.

Recent Trends in Bulk Drug Imports

• FY23-24 Bulk Drug Imports: $4.55 billion, a marginal fall from $4.51 billion in FY22-23.

• H1 FY25 Imports: Fell by 13.2% to $1.93 billion from $2.23 billion in FY24.

• H1 FY24 Imports: Fell by 1.23% from $2.256 billion in H1 FY23.

• FY21-22 Imports: Rose 20% because of COVID-19, to $1.898 billion in H1 FY22.

Government Initiatives to Reduce Bulk Drug Imports
The Indian government is taking efforts to decrease reliance on imported bulk drugs, drug intermediates, and key starting materials (KSMs) through various initiatives:
Production Linked Incentive (PLI) Scheme for Bulk Drugs

• Launched on July 21, 2020, with a total outlay of ₹6,940 crore.

• Facilitates domestic manufacture of 41 critical bulk drugs.

Incentives for fermentation-based bulk drugs:

• 20% for the first four years

• 15% for the fifth year

• 5% for the sixth year

Incentives for bulk drugs of chemical synthesis:
10% for six years on qualified sales.

Encouragement of Bulk Drug Parks

• The government has introduced bulk drug park schemes to increase domestic manufacturing capacity.

• The move is expected to reduce dependency on imports and increase indigenous API production.

Future Outlook

• Though attempts have been made to cut short-term import dependence, India still depends on China for bulk drug imports. Yet, the government's PLI scheme and infrastructural investments in bulk drug parks are likely to develop domestic API production in the next few years.

• The marginal rise in imports is the result of world demand for medicines and supply chain realignment post-COVID-19. The sector is presently balancing imports with increased local production, both assuring cost savings and quality management.

India's imports of bulk drugs increased by 2.3% during the first nine months of FY25, with consistent demand for pharma raw materials. The government's initiative to produce locally through the PLI scheme and bulk drug parks is likely to curb import dependence in the future while enhancing India's self-reliance in pharma production.