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Ministry of Chemicals and Fertilizers | Department of Pharmaceuticals | Directorate General of Commercial Intelligence and Statistics (DGCIS)
In a response to a Rajya Sabha query, the Ministry of Chemicals and Fertilizers has disclosed that India imported 200 categories of Active Pharmaceutical Ingredients (APIs), bulk drugs, and drug intermediates worth approximately USD 4.35 billion in FY 2024-25, as per HSN (Harmonised System of Nomenclature) based import data. Data from the Directorate General of Commercial Intelligence and Statistics (DGCIS) reveals a critical single-source vulnerability, with China accounting for 73.7% (USD 3.2 billion) of these imports. Other notable sources include the European Union (13.6%), Singapore (2.5%), and the United States (1.9%).
Vulnerability in Essential Therapeutics The import dependence spans a wide range of critical therapeutic segments, including:
Life-Saving Medicines: Antibiotics, anti-fungal, oncology (cancer) drugs, and cardiovascular treatments.
Chronic and Endocrine Care: Antidiabetics, hormonal disorder treatments, and neurology/substance use disorder medications.
Reproductive Health: Contraception and female infertility treatments.
Nutritional and Gastrointestinal: Essential amino acid deficiency and gastrointestinal disorder treatments.
What are “Active Pharmaceutical Ingredients” (APIs) and why is their import dependence risky? Active Pharmaceutical Ingredients (APIs) are the biologically active components of a drug product that produce the intended effects for diagnosis, cure, or prevention of a disease. High dependence on a single source like China creates “single-source vulnerability,” making India susceptible to supply chain disruptions, price volatility, and predatory pricing. As experienced during COVID-19, such dependency threatens pharmaceutical security and national self-reliance, potentially leading to critical shortages of essential medicines.
What is the "HSN" system used to track India’s API imports? The Harmonized System of Nomenclature (HSN) is an internationally standardized six-digit numerical method of classifying traded products, developed by the World Customs Organization (WCO). In the context of India’s pharmaceutical security, HSN codes allow the Department of Pharmaceuticals to precisely categorize and monitor the import of 200 specific categories of bulk drugs and drug intermediates. By tracking data through these uniform codes, the government can identify exact therapeutic gaps—such as the 73.7% dependence on China—and tailor specific duty structures or production-linked incentives to boost domestic manufacturing.
Policy Relevance
The disclosed import data underscores the urgent need for pharmaceutical de-risking and domestic capacity expansion.
Mitigating Geopolitical Risk: The high concentration of imports from China necessitates a “China Plus One” strategy to prevent predatory pricing and ensure a steady supply of essential bulk drugs during geopolitical uncertainties.
Strengthening Self-Reliance: Transitioning from an “Atmanirbhar” intent to measurable outcomes requires incentivizing the domestic production of the 200 identified API categories, particularly in high-impact areas like antibiotics and oncology.
Standardizing Data for Planning: Utilizing HSN-based import data allows for precise policy targeting, enabling the Department of Pharmaceuticals to monitor therapeutic gaps and tailor PLI schemes to the specific categories with the highest import value.
Protecting Essential Health: Securing the supply chain for antidiabetics and cardiovascular drugs is a core requirement for managing India’s rising burden of non-communicable diseases (NCDs) and meeting SDG 3 targets.
Relevant Question for Policy Stakeholders: How can the Department of Pharmaceuticals utilize this HSN-based data to design a ‘Tiered PLI 3.0’ that offers higher incentives for the domestic synthesis of APIs in the oncology and neurology segments, where single-source vulnerability is most acute?
Follow the full news here: India’s dependence on imported APIs