Economics
China Shutdown to Ripple Across India From Drugs to Electronics
- India sources about 80% of raw material for drugs from China
- Situation is likely to worsen from April, manufacturers say
Photographer: Sam Panthaky/AFP via Getty Images
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India, the world’s second-most populous nation, is facing the ripple effects of shutdowns in China with production of medicines to mobile phones being hit as supply chain disruptions prolong.
Prices of paracetamol, the most commonly used analgesic, have jumped by 40% in India, while the cost of azithromycin, an antibiotic used for treating a variety of bacterial infections, has risen by 70%, said Pankaj R. Patel, chairman of Zydus Cadila. The pharma industry could face shortages in finished drug formulations starting April if supplies aren’t restored by the first week of next month, he said.