Once enforced, import of raw materials such as bulk drugs or active pharmaceutical ingredients (APIs) will not be allowed below the MIP.
A top industry source told ET the proposal, following a series of consultations with the industry, has moved from the department of pharmaceuticals and is now in the final stages with the health ministry. “The details, products, pricing and other terms will be notified to the DGFT (Directorate General of Foreign Trade) soon,” the person informed.
Currently two products-ATS-8 and sulphadiazine-have been classified for MIP but the new notification may include key materials such as Penicillin-G, 6APA and amoxicillin.
For ATS-8, the imported price was fixed in September at $111 per kg until September 30, 2026, while the price for sulphadiazine was fixed a month later at Rs 1,174 per kg with the same stipulated timeline.
Experts view the government move for expanded MIP as a strong signal to the industry towards self-dependence (atmanirbhar) in the wake of China’s strong dominance in supplies of raw materials to the Indian pharmaceutical industry.China supplies roughly 70% of raw material consumed by the pharmaceutical industry, valued at $3-4 billion. In 2020, the government launched the ambitious production-linked incentive (PLI) scheme to draw investments in manufacturing of critical raw material from the indigenous industry.
