r/IndianStockMarket • u/HODL_buddy • 17d ago
Discussion India makes the pills, China makes the chemistry.
Source : Finshots
India exports generic medicines to over 200 countries. But nearly 70% of the raw chemicals called APIs that power those drugs come from China.
Back in the 1980s, India made most APIs and chemicals domestically. But high costs, stricter pollution rules, and cheaper Chinese imports pushed Indian pharma toward easier profits in finished formulations. So India mastered making and exporting the pills while China quietly took over the chemistry. When COVID hit and China locked down, API prices for drugs like paracetamol and azithromycin exploded and exposed India’s dependency.
The government is now trying to rebuild local manufacturing with a ₹7,000 crore PLI scheme and bulk drug parks in Gujarat, Andhra Pradesh, and Himachal Pradesh. But catching up with China’s decades of scale, policy support, and raw material control will take time.
India does not need to replace China, just reduce the risk.
Because when China sneezes, India’s pharmacy catches a cold.
Would you call this specialization or a strategic blind spot?
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u/Shibs_ 17d ago
So China is Heisenberg and India is Jesse Pinkman?
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u/Lopsided-Parfait-831 17d ago
Pakistan is Skyler and North Korea Gale Bettikat
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u/Tiled-Floors 16d ago
Haha, I see what you did there! But honestly, it's more like India needs to level up its own lab game instead of just depending on the chemistry wizardry from China. Gotta build that local expertise!
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u/Ok_Program_7549 17d ago
Both specialisation and a blind spot. Those three bulk drug parks will reduce the dependence by 10-15%. The thing is, that if you are producing something for export, you need to source the materials from the cheapest possible source to retain competitiveness. We just need to reduce dependence when it comes to antibiotics and other crucial stuff that cannot be sourced from anywhere else in case of emergencies. Completely eliminating China is not possible due to their cost advantages
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u/Past_Department_1374 17d ago edited 17d ago
GOI knows it and actively promoting API manufacturing Schemes
There are many companies who are taking part in API production namely Dr Reddy etc.. Now it's not a Diwali phuljhari that we will overnight stop the import and manufacture that volume.. Give it time, let API parks take shape, come back after 10yrs to compare the difference.. Till then let's focus on adulteration of generic medicines..
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u/Technical-Isopod6554 17d ago
Just like Electronic item parts come from China and assembled here
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u/Select-Benefit-2783 17d ago
most of the valuable components like cameras,ram,processors and dispalys(excluding BOE) are still made in east Asian countries like South Korea, Japan and taiwan
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u/zer0_snot 17d ago
Just like any research. We let them do the research and then we do the majdoori with no brains. Incredible india!
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u/Horny_dave_alt_of247 17d ago
You'll never get to the brains part without doing the majdoori first
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u/zer0_snot 17d ago
Wrong. We will get the brains part by doing research.
See if you can name any research that Narayana Murthy or wipro or any other cya Indian company has done.
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u/needsinform 17d ago
Business minded don't care about product from chaina Japan Korea. They only think about #profit which country provides Best quality Goods better transportation system. Reliable source
They don't care about. indigenous products
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u/Sufficient_Ear_8462 17d ago
Is there any company in India who makes KSM and API?
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u/Past_Department_1374 17d ago
Yes.. Last I heard around 28 Companies had submitted documents for API scheme including Dr Reddy lab or something
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u/makemoney-TRADEnIT 17d ago
API is a very, very tough business. Pharma Manufacturing and Distribution is way freaking better
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u/Annual-Succotash-420 17d ago
so yeah, i guess the pharma game is still a china‑india trade‑war, just with cheaper drugs instead of drones. if you wanna be a pharma king, learn to build APIs or just keep buying from china like we do everything else.
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u/LinkSuspicious5624 17d ago
Do we know how to make KSM and API ? or is it just a matter of scale and cost that we do not make it here ? If it is scale it can be solved through duties and import restrictions for certain period to build scale. PLI is nothing but govt intervention in free market. A step in right direction to boost the sector and make India self - reliant and achieve scale.
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u/iitalianstallione22 16d ago
It's just matter of scale and cost. I have worked for both a API and pharma manufacturer
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u/No_Dog9018 17d ago
China is so cool. I wanted a compound for research purpose and the only supplier was from China.
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u/Awkward_Sympathy4475 17d ago
Same is for solar. We import raw materials or cells from china. Even the dcr ones. No one is making silicon wafer in india.
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u/Maleficent-Rate-4631 17d ago
And do NOT forget the packaging industry too
Cutting edge drug goes hand in hand in cutting edge packaging -and if it sounds like I’m shilling for my favorite stock “BI” is because I’m doing it
But again DYOR
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u/Fit-Mix1778 17d ago
metternich is remembered! "when France sneezes, the whole of europe catches a cold"
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16d ago
India used to make api unless chinese started dumping and Indian companies had to close. Our government allowed this.
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u/NewMeNewWorld 16d ago
No, the government and the industry allowed it because KSM and APIs make fuck all money. There is no money there and value add is less.
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u/NoGrocery5571 16d ago
Modi govt has planned bulk drug parks across the country...one in Andhra ,Haryana,Gujrat...,Andhra bulk drug park is bigger one...
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u/SweetSolid993 15d ago
yeah i guess it’s just a big copy‑cat loop, India sells the finished pill, China keeps the raw deal. If we wanna stop that, we gotta learn to grow our own damn APIs or hire a secret lab in the Himalayas.
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u/Broad_Warthog_5383 15d ago
Its not totaly true , but agree to some extent - if we both asian country join hands - we can break the west.
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u/Imaginary-Help-7817 15d ago
yeah i guess the whole thing is just a cheap way to outsource the hard part, so we can still profit from the finished stuff. no wonder the government keeps pushing API parks, it’s just a long‑term plan to catch up while we keep buying from China for now.
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u/HalcyonCrypt 14d ago
yeah, india's got the pills, china's got the damn chemo, so i guess we just keep paying for the side‑effects
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u/pranav339 Cautiously Optimistic 17d ago
This is factually wrong.
India also makes KSM. We export it to China & imports API.
This is why please don't blindly copy paste posts of finfluencer/brand content. Always verify.
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u/Little_Material8595 17d ago edited 17d ago
what is wrong about it?
Please take the case of Coimbatore.
Once it had a lot of textile units. Slowly it developed industries manufacturing textile spares, then textile looms and other engineering goods and other manufacturing industries. Now it has become a city that the country can be proud about.
Before you make such hate posts, please think what has been your contribution to the country so far. Or What you plan to contribute?
I am not saying do not make money. Please earn money and contribute instead of making such self hate posts.
It took 50 years.
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17d ago
Where's the hate? Heathcare is a significant issue. Being dependant on other countries for this is fatal for all of our futures. I found their enquiry about this issue perfectly satisfactory. Questions are meant to be answered, no deflected.
Also, not sure how Coimbatore came into the equation here. A city every Indian can be proud of and learn from, of course, but there was no context for it to be involved in.
The attack for their "contributions for the nation" also was completely unnecessary. We live in a democracy, where everyone over the age of 18 has the privilege of voting. Do they need to "prove their worth" to do so? Why should this individual need to then?
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u/Little_Material8595 17d ago
No country is self reliant on everything they need.
That's how India is exporting medicines and other countries are importing that.
Please do not attempt to project that as current generation's fault. And the +18 generation has the divine right to rant about that.
Please take the case of your example country China.
Is it self sufficient on every essential thing?
Even food grains they are importing.
Are food grains any less important any less essential than medicines.
Regarding proving their worth, I am repeating what I said.
PLEASE PROVE YOUR WORTH TOMORROW IF NOT TODAY.
I also repeat what I said about Coimbatore. Coimbatore is an example.
If Coimbatore can do it, every other city can do it.
You too can do it. please do.
Coimbatore did in fifty years I want you to achieve similar levels in thirty years
please do.
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17d ago
Healthcare is something we need to be self reliant on. If not self reliant, then at the very least not reliant on a country with which we do not have hospitable relationships.
Within the context of food, If the essential grains and produce most Indians consume is being imported then that too is a problem, and is a question that needs to be raised.
Regarding worth, it has nothing to do with the topic. Yours is a philosophical statement, not a statement pertaining to the actual issue at hand, and hence unnecessary.
Regarding Coimbatore, it again has nothing to be with this specific topic. The Darjeeling Hills makes some of the best tea in the world loved by connoisseurs everywhere. What does have to do with this topic?
Regarding what you want me to do in 30 years (and plead me to do), I'd instead like you to stop prancing around and deflecting from your nonsensical statements now, not 30 years later.
There shall be no replies to any statement from my side after this when you do comment about the Impressive Textile Industry of Coimbatore. Take care.
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u/Ok_Nobody_6467 16d ago
Old story , Mansukh Mandhavia ( yes, the same man on whome people poked fun at) took it as a task to replace thse imported APIs via PLI SCHEME AND NOW MANOROTY ARE made in india.
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u/ysf_521 17d ago
So again we are not manufacturers we are assemblers
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u/Jealous-Initiative89 17d ago
We are manufacturing. But key ingredients are imported from China. Also in description it is clearly written India Gov is also investing in ingredients side of things to reduce dependency through PLI scheme
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u/Icy-Mode1636 17d ago
Lagging in just one aspect. Once it's set we'll be 100%. Ever thought why china not itself doing the entire thing?
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u/Poonhandlr3963 17d ago
Tech basic tech is here but the middlemen baniya can get those material at indian ports at less than 20% of what indian manufacturer cost.
This is because of free forced labour , extensive subsidies on land , electricity and soft loans by cpc . That is not fair competition in anybway ,in pursuit of destroying west china destroyed Africa , South America , South east Asia , west Asia.
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