Benefits and Impact on India Pharma Industry due to Boycott China.
                     Benefits and 
Impact on India 
Pharma Industry 
due to Boycott 
China
Introduction
• India and China are witnessing rising friction as India unexpectedly wants to suspend 
trade, in the middle of all the ongoing political uncertainties between the two 
nations.
• However, such a potential play is a major source of concern for India's 
pharmaceutical sector besides Indians
Source: ET
India and China trade gains and losses 
over the years
• India's trade deficit with China went up in the final year to $46.56 billion. 
• China's exports to India totaled $58.33 billion , up 0.2 per cent compared to $58.25 
billion in 2015. India's exports to China fell to $11.76 billion by 12 percent from 2015.
Source: TImesNow
Impact 1
• According to Pharmexcil, restricting or prohibiting the importation of APIs would 
cause significant disruption to the Indian pharmaceutical industry, which had 
revenues of $40 billion in 2018–19.
Source: Pharmexcil
Impact 2: Global Impact
• A significant reduction in Indian pharmaceutical manufacturing and its annual 
exports worth nearly $ 20 billion will impact access to medicinal drugs both in India 
and around the world.
Source: Agility
Benefit 1: Bridging the Gap
• Development has assumed considerable importance as India is currently asking 
markets to increase their access to goods and services, including IT, agriculture, and 
pharmaceuticals. These are being done to widen the trade deficit gap caused by the 
ban.
Source: Medium.com
Benefit 2: Imbalance trade
• At the assembly of India China Joint Group on Trade, Economic Relations, Science, 
and Technology here, the dilemma of trade imbalance has been discussed in detail.  
China on its role promised to deal with the trade gap issue.
Source: pixabay
Benefit 3: Less Dominance of 
China
• Chinese company fear missing out on India's if the ban stays in place booming this 
year, based on Media Industry GroupM, nearly 280 billion rupees ($3.7 billion).
Source: pixabay
Issue 1: Import Problem
• Bulk fermentation drugs, antivirals and retrovirals, products used in cardiovascular 
conditions, and the central nervous system, as well as vitamins are some of the 
classifications of therapy that India mainly imports. And China makes up 60 percent 
of those imports.
Source: ET
Issue 2: Increasing Price
• Prices of a few products have increased due to the pandemic and further rise is not 
ruled out. The increase in dollar rate will also cut margins, as per Pharmexil Director 
General R Uday Bhaskar.
• It is clear that when we ban Chinese products and start making it from scratch, the 
price is going to increase.
Source: pixabay
Conclusion
• Banning China products shouldn't be an emotional issue. First, they need to build 
capacities and capabilities. 
• There are decisions that the major producers and professional specialists have to 
take.
Source: Medicalexpress