China-Plus-One strategy: Indian API firms start to reap benefits

Rising Chinese labour costs, geopolitics, pandemic-stricken uncertainties have forced global players to derisk

The pandemic-stricken supply disruptions and the extant geopolitical tensions have benefited Indian active pharmaceutical ingredient (API) players the most, claims the industry. As multinationals (MNCs) pursue a China Plus One strategy to derisk dependency on the world’s second-biggest economy, Indian players are steadily emerging a clear favourite.

Says Siddharth Mittal, chief executive officer and managing director (MD) of Biocon, “Our customers want an alternative source, assuming Indian companies also offer at the same price. More and more customers are seeking a long-term derisk and shrugging off Chinese reliance. We are also taking steps to ensure we can lock in vendors who