Following an INR69bn incentive scheme for APIs, the Indian government has come up with an INR150bn scheme for formulations and more. Will this $3bn push prove to be the one that companies like Sun Pharma and Aurobindo, currently at 36 and 48 respectively in Scrip 100 rankings, need to break into the top league?

As India revealed finer details of two schemes to promote bulk drug production, Mankind Pharma and Aarti Drugs spelled out a preference for chemical synthesis products - they are likely to be joined by more companies reluctant to invest in some that are fermentation-based. Whether a “plug and play” format for bulk drug parks will attract foreign investment remains to be seen.

Alembic and Biocon kick off the Q1 earnings season in India with significant growth in the active pharmaceutical ingredients business and expect to see continued momentum in the area. More Indian firms could gain as customers realign strategies and move away from single sources to de-risk their supply chain, learning from pandemic-related disruptions.