Indian Government Proposes $400 Million Incentive Package for API Projects, an Industrial Info Market Brief

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To counter the dwindling supply of active pharmaceutical ingredients (APIs) from China amid the COVID-19 outbreak, the Government of India has proposed the creation of a $400 million fund to incentivize domestic companies to API units.

The proposal by the Department of Pharmaceuticals (DoP) before the federal cabinet would provide financial incentive to those pharma companies who are willing to invest at least $67 million in a new plant or in the expansion of an existing one. The government also has identified 38 candidate APIs as priorities to reduce the country's dependence on Chinese imports.

One of the world's largest suppliers of generic medicines, India relies on China by as much as 70-80% for some specific APIs. The incentive scheme is expected to help expedite the execution of API projects that have been delayed primarily due to funding or awaiting financial closure.

Industrial Info's India database includes has includes 436 Indian API projects in the planning phases that are awaiting various approvals, including financial closure. Click here for a list of projects and see map below.