India is preparing to introduce a minimum import price (MIP) for several essential pharmaceutical raw materials. This major decision aims to protect domestic manufacturers from extremely low-priced imports, especially those coming from China, and strengthen India’s long-term vision of becoming self-reliant in pharmaceutical production.
The move comes at a time when India’s pharma industry is rapidly expanding yet remains heavily dependent on imported active pharmaceutical ingredients (APIs). Setting a price floor is expected to stabilize the market, encourage domestic investment, and enhance India’s overall manufacturing capacity.
Why the Minimum Import Price Policy Matters
The Union Government is in the final stages of implementing the new pricing rule after extensive consultations with industry leaders. Once the notification is issued, the import of key APIs and bulk drugs will not be permitted below the defined price threshold. The proposal has already been moved from the Department of Pharmaceuticals to the Ministry of Health, and details will soon be notified by the Directorate General of Foreign Trade (DGFT).
This step aligns with India’s efforts to reduce excessive dependence on imported raw materials and provide a competitive environment for local API manufacturers. It will also support Indian companies expanding into niche business models such as monopoly franchise distribution. To understand more about monopoly-based opportunities, refer to this keyword:
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Products Already Under Minimum Import Price
Two products have already been placed under MIP:
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ATS-8, with an import price fixed at 111 USD per kg until 30 September 2026
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Sulphadiazine, with an import price set at ₹1,174 per kg until the same deadline
The next announcement is expected to include additional high-demand raw materials such as Penicillin-G, 6-APA (6 Aminopenicillanic Acid) and Amoxicillin. These ingredients are widely used in manufacturing common antibiotics consumed across India and exported globally.
Addressing China’s Dominance in API Supply
China currently supplies nearly 70% of the raw material used in India’s pharmaceutical industry, valued at 10–12 billion USD annually. This level of dependency exposes Indian manufacturers to supply chain risks, global pricing fluctuations and geopolitical challenges.
Introducing a minimum import price is a strategic step to counter predatory pricing, stabilise the domestic market and encourage companies to invest in indigenous manufacturing of APIs. The government’s decision also complements the Production-Linked Incentive (PLI) scheme launched in 2020 to boost India’s API and bulk drug production.
Boost for Local Manufacturers and Contract Manufacturing Partners
The expanded MIP policy will motivate local producers to upgrade capacity, maintain consistent production and reduce dependency on foreign suppliers. It will also positively impact businesses working with large-scale third-party manufacturers and contract manufacturers. To explore this ecosystem further, refer to this keyword:
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For many companies, this change represents an opportunity to strengthen supply chains, secure raw material availability and plan long-term growth without the uncertainty caused by aggressive import pricing from foreign suppliers.
Towards a Stronger and Self-Reliant Pharma Ecosystem
Industry experts believe the introduction of minimum import prices sends a strong message about India’s commitment to building an Atmanirbhar (self-reliant) pharmaceutical sector. With China’s significant dominance in API supply, this policy marks a crucial shift toward balanced competition and domestic capability development.
As India awaits the final DGFT notification, the pharmaceutical industry is optimistic that this policy will drive investment, encourage innovation and create a more stable environment for manufacturers across the country.