Indian APIs VS Chinese APIs

Indian APIs VS Chinese APIs
When it comes to API trade, we have to mention the world's two largest API exporters - China and India
Chinese APIs
China's API exporters are mainly private companies, more than 10,000 API manufacturers and exporters from China contribute to 80% of China's total annual drug exports and 40% of global API exports, of which chemical API dominate China's API industry, after calculating that China accounts for 70% of the global chemical active pharmaceutical ingredient market, all data reflect China's irreplaceable position in the global pharmaceutical market.
India APIs
And the same Asian API exporters in India, export data is also bright. According to statistics, the U.S. annual imports of APIs 70-80% from India and China because of the global market, only India and China, the two countries have complete production facilities and a rich pool of talent in the pharmaceutical industry. Advantages of India pharmaceutical companies
For Chinese API manufacturers and exporters, India is undoubtedly the biggest competitor. India's position in the field of drug master file (DMF) can not be shaken, what is the drug master file DMF it, DMF refers to the voluntary submission to the authorities of the importing country, including the basic information of the drug, ingredients and confidential information of the drug. According to statistics, China holds 12% of the DMF in the United States, while India holds nearly 50%, which is an advantage for Indian drug manufacturers and exporter.
India is known as the "global pharmacy" precisely because of its excellent generic drug production capacity. The annual export of generic drugs from India accounts for 20% of the global market, while China's generic exports account for less than 2% of the global market. Why is there such a big difference between Chinese generic drugs and India, we can summarize the following reasons:
First, India has a greater labor cost advantage than China, which is self-evident.
Secondly, India has a population almost as large as China's, which means it has a huge domestic demand market.
Thirdly, India has a language advantage, as Indians speak better English than Chinese,which gives them an advantage in dealing with customers in Western countries.
Fourth, many Indian pharmaceutical companies have established very close cooperation with the U.S. drug giants, it can be said that from research and development to the final commission production of India domestic pharmaceutical companies have a deep binding relationship with U.S. drug companies, and due to the U.S.-China trade war in recent years, the United States and India’s pharmaceutical cooperation more closely. The dependence of Indian pharmaceutical companies on Chinese APIs is a phenomenon that cannot be ignored
We have briefly described the current situation and advantages of Indian pharmaceutical companies above, but after analyzing the data, we can find the fact that Indian pharmaceutical companies are more dependent on Chinese APIs than they appear to be.
Recently, many well-known Indian pharmaceutical companies have said that in order to ensure the safety of active pharmaceutical ingredient will gradually reduce the dependence on Chinese API imports in a few years’ time, and turn to the country’s internal search for stable API suppliers, which means that India wants to achieve localization in the field of active pharmaceutical ingredient.
According to statistics, India’s annual API imports are valued at $3.5 billion, of which 70%, or $2.5 billion, comes from China’s API exports. Although the Indian government has been advocating “API independence” and investing heavily in domestic API companies, the reality is that India is largely dependent on active pharmaceutical ingredient imported from China. Why should 70% of Indian APIs be imported from China?
In fact, the reason is not complicated, the main reason is that India’s chemical industry is not developed enough, compared to China is too much behind. To know the API to form a complete supply chain is still relatively high difficulty, because there are thousands of types of API and also take into account the quality of these active pharmaceutical ingredients, production process and other conditions, so India wants to form a complete API supply chain in a few years is not very realistic. Then there is the reputation of Chinese active pharmaceutical ingredients has been rooted in the world, occupying 70% of international market, not to mention the price if very low, many active pharmaceutical procurement will directly choose Chinese API manufacture and exporter so as to save more time and effort.