38.6c New Delhi, India, Friday, April 12, 2024

Madras HC Constitutes Committee to Boost Indian Pharma Sector; Raises Concern Over Heavy Dependence on Chinese Markets

By Arundhuti Deshmukh      12 October, 2020 10:50 PM      0 Comments
Madras High Court Indian Pharma Sector

The Madras High Court has expressed apprehension about India’s over-dependence on ’hostile neighbor’ China when it comes to the import of Active Pharmaceutical Ingredients (API).

This observation was made on the grounds that it hinders the nation’s response to security and other breaches by the neighbor. APIs are the ingredients in the medicine that play the major role of acting upon the illness. While India, which is regarded as a pioneer in pharmaceuticals, does not import medicines per se, the country imports APIs, which are the crucial ingredient in the drugs’ manufacture.

At one stage, even the National Security Advisor (NSA) has cautioned the Government of the danger to our national security on account of this excess import dependence from a single nation” the Court said. It is said that China is also the global leader in the production and export of APIs, which is enabled by government support and lower costs on various fronts.

The Court notes that the economic advantage of importing APIs from China has led to India losing its scientific-edge and self-reliance in APIs. It is said that China is able to sell its APIs to India at 25% of the cost that it would take to manufacture in India. “As a result, our country that had once built 99.7% self-reliance in APIs went on to import over 90% of its API requirements from China”, the Court said. “At one stage, even the National Security Advisor (‘NSA’) has cautioned the Government of the danger to our national security on account of this excess import dependence from a single nation” it added.

Fearsome prospects of Indian patients having to consume sub-standard drugs or go without medicines, in case of escalation of tensions with China were also mentioned by the Court, in view of the Galwan clashes.

The court made the observations while ordering that a five-member committee be set-up to ensure the enabling of a private company Vinkem Labs Ltd to become a global player that can bring in foreign exchange and also ensure India’s self-reliance in cancer drugs.

In an issued on September 30, 2020, the Court said that a committee must be formed within eight weeks to facilitate requirements of Vinkem Labs including fiscal and regulatory for R&D, commercialization, industry development, regulatory compliances, technology infusion, exports, domestic supply, and others.

The proposed committee is meant to have a member each from the Union Ministry of Pharmaceuticals and Finance Ministry not below Joint Secretary rank, Secretary, Department of Pharmaceuticals, Government of Tamil Nadu, one member from Bank of India and National Bank for Agriculture and Rural Development (NABARD) not below the rank of Senior General Manager and N.L.Rajah, the amicus curiae appointed by the court.

The court-monitored Committee is also required to remove delays and difficulties, including funding requirements of Vinkem Labs with necessary recommendations to the banks.

Share this article:

Leave a feedback about this

Trending Business
SC sets aside judgment upholding arbitral award against DMRC [Read Judgment]

Supreme Court overturns arbitral award favoring Reliance Infrastructure subsidiary against DMRC, citing grave miscarriage of justice.

11 April, 2024 11:43 AM
Trending Political NEWS
Delhi HC rejects third plea for Arvind Kejriwal's removal as Delhi CM, blasts petitioner for abuse of judicial process [Read Judgment]

Delhi High Court dismisses the third PIL plea before it seeking Aam Aadmi Party leader Arvind Kejriwal’s removal as Chief Minister of Delhi, imposes Rs. 50,000 cost on petitioner.

11 April, 2024 03:29 PM


Trending Judiciary
Supreme Court Rejects Plea to Repatriate Mortal Remains of Sufi Saint from Dhaka

Supreme Court declines plea to repatriate mortal remains of Sufi Saint, an Indian-born Pakistani national who died in Dhaka.

06 April, 2024 01:40 PM
Trending Judiciary
'28 % GST on online gaming companies,' SC transfers to itself all pleas pending in 9 HCs

Supreme Court consolidates 27 petitions challenging the 28% GST on online gaming companies from 9 High Courts, amid legal disputes over tax rates.

06 April, 2024 01:45 PM
Trending Judiciary
SC grants bail to Prof Shoma Sen in Bhima Koregaon case [Read Judgment]

SC grants bail to Prof Shoma Sen in Bhima Koregaon case, citing lack of evidence linking her to banned terrorist group CPI (Maoist). Details inside.

06 April, 2024 01:58 PM
Trending Judiciary
SC directs TN DGP to hold inquiry for blatant, shocking acts by police in tutoring witnesses [Read Judgment]

Supreme Court directs Tamil Nadu DGP to investigate police misconduct in witness tampering, leading to acquittal in murder case.

06 April, 2024 05:31 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email