Date : 17/06/2023

Relevance:

• GS3 : Awareness in Biotechnology and other issues
• GS2 : Regional and global groupings, Agreements involving India and/or affecting India’s interests.

Key phrases: Quad, Global BioManufacturing hub, Supply Chain Vulnerability, API (Active pharmaceutical Ingredients ), Quad collobration.

Why in the News?

• On March 21, the QUAD ( USA, India, Japan,Australia ) set up a Critical and Emerging Technology Working Group to facilitate cooperation in emerging technology including Bio technology.
• Biomanufacturing uses living systems to produce molecules and material on a commercial scale. This field has the potential to transform the global industrial system. Many countries including the USA and China recognise the need to optimise this ecosystem and design specific policies.

The Quad and complementary strength

• Quad should establish a Bio manufacturing hub in India to benefit from the country's economic potential and address supply chain vulnerability. They can leverage complementary strength as the USA has funding capability, while the other three possess advanced biotechnology innovation systems.
• India is an ideal choice due to its existing infrastructure, skilled manpower, pharmaceutical manufacturing expertise, and potential to provide affordable scale. As per latest survey the cost of manufacturing in India is around 33% lower than compared to USA.
• India also envisioned the country as a global biomanufacturing hub by 2025 ($ 100 billion). To achieve it India needs QUAD support.

Challenges to Pharmaceutical industry

Some challenges faced by the pharmaceutical industry in India include:

• Supply chain vulnerability : China dominates in the API markt and India is heavily dependent on China. India PLI (Production linked incentives ) scheme for the Pharmaceutical industry with $2 billion was to reduce its dependency on China.
• Lack of Skill : India needs to uplift its workforce quality. There are many professionals but they lack access to Cutting edge technology and training.
• Intellectual property rights: Protecting intellectual property rights and dealing with patent-related issues can be a challenge for pharmaceutical companies. India has faced criticism for its patent laws and the issuance of compulsory licenses for certain drugs.
• Regulatory compliance: Meeting the stringent regulatory requirements and maintaining compliance with various regulations, such as those imposed by the Central Drugs Standard Control Organization (CDSCO) and the World Health Organization (WHO), can be challenging.
• Quality control and counterfeit drugs: Ensuring quality control throughout the supply chain and combating the issue of counterfeit drugs is a significant challenge. Counterfeit drugs not only pose risks to patient safety but also harm the reputation of the pharmaceutical industry.

Conclusion

• This collaboration will facilitate and boost collaborative effort among QUAD nations and establish a secure supply chain to QUAD nations and reduce strategic dependency on China.
• It's worth noting that while some challenges exist, the Indian pharmaceutical industry also benefits from various strengths, including a large pool of skilled professionals, cost advantages, and a robust generic drug manufacturing sector.
• The proposed BioManufacturing Hub can capitalise on economic potentials of Biomanufacturing industries and address existing and potential vulnerability in the global system.

Source : The Hindu