API import dependence remains high as China supplies nearly 74%: Government

New Delhi: API import dependence remained high in 2024-25, with India importing bulk drugs, drug intermediates and active pharmaceutical ingredients worth about USD 4.35 billion, the government told the Rajya Sabha.

In a written reply, Minister of State for Chemicals and Fertilizers Anupriya Patel said China accounted for nearly 73.7% of India’s total API and bulk drug imports during the financial year. The data was based on Harmonised System of Nomenclature import figures.

According to the government, India imported around 200 categories of APIs, bulk drugs and intermediates. These imports covered several critical therapeutic segments across the pharmaceutical sector.

High import dependence was observed in antibiotics, anti-fungal and anti-amoebic drugs. Other affected segments included gastrointestinal, antidiabetic, endocrine and hormonal disorder medicines.

The data also showed dependence in cardiovascular, oncology, neurology and substance use disorder treatments. Medicines related to female infertility, contraception and essential amino acid deficiency were also among high-import categories.

Besides China, the European Union emerged as the second-largest supplier, accounting for 13.64% of imports. Singapore, the United States, Japan and Switzerland followed with smaller shares.

The Directorate General of Commercial Intelligence and Statistics compiled the import data. Officials said the figures reflected structural dependence on a limited number of global suppliers.

API import dependence poses risks amid geopolitical uncertainty

The government warned that API import dependence carries potential risks due to geopolitical uncertainties. These include single-source vulnerability, price volatility and the risk of predatory pricing.

According to the ministry, reliance on a single dominant supplier threatens pharmaceutical security. Such vulnerabilities, it said, can affect medicine availability during global disruptions.

The government recalled the COVID-19 period as an example of supply chain stress. At that time, restrictions and disruptions exposed weaknesses in global pharmaceutical sourcing.

Officials said sustained import dependence could undermine self-reliance in critical medicines. Therefore, reducing exposure to single-country sourcing remains a policy concern.

The government did not outline new measures in the reply. However, it reiterated the importance of strengthening domestic manufacturing capacity for APIs and bulk drugs.

The minister said the data was shared to inform Parliament about current import patterns. She added that addressing these risks remains essential for long-term pharmaceutical resilience.