Abstract
India’s prime minister, Narendra Modi, announced an economic development scheme last year called Atmanirbhar Bharat, which translates roughly to “self-reliant India.” Introduced as a response to COVID-19, the program, often called the production-linked incentive (PLI) plan, offers financial support for building or expanding production assets in 10 sectors, including pharmaceuticals. Despite a reputation for being a major source of pills and active pharmaceutical ingredients (APIs), India actually depends heavily on China to fulfill its pharmaceutical needs. A recent report by the consulting firm PwC estimates that about half the country’s API requirements—including for finished drugs that it subsequently exports—are met by China. And the raw materials and intermediates for the other half come almost entirely from China. The potential liabilities of reliance on China , long a concern in Indian industry and government, became an immediate threat when the pandemic hit and increased demand for drugs needed to treat COVID-19.
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