The Indian government has promised the Association of Southeast Asian Nations (ASEAN) full cooperation in generic drug manufacturing, as a group of nations is increasingly becoming dependent on China, according to MoneyControl.
The move comes in exchange for ASEAN’s support to India’s bid for the global intellectual property rights (IPR) waiver for COVID-19 vaccines at the World Trade Organization (WTO), according to sources told to MoneyControl.
India has expressed its willingness to team up with East Asian partners for the production of generic drugs and interventions to treat COVID-19, and vaccine production.
Globally, nearly 70% of vaccines are produced in India. The nation is also known for its large potential in producing affordable generic medicines.
The ASEAN nations have also responded favorably to India’s overtures, according to an External Affairs Ministry source.
India exports nearly 20% of global generic drugs, according to the Department of Pharmaceuticals. In fact, India is the third-largest pharmaceuticals industry in the world, with the majority of companies developing and selling generic drugs.
The Indian government had announced a production-linked incentive scheme that seeks to provide financial incentives to eligible manufacturers of 41 products, according to MoneyControl.
A senior government official said, “To make the scheme even more attractive, the government has later allowed exports under the scheme as well. We have informed the ASEAN Bloc that exports to their region would not be restricted.”
However, some nations failed to meet the early August deadline due to the differences on the subject.
If the proposal becomes global law, a massive ramp-up in the manufacturing of vaccines is expected, especially in low-income nations, per the Indian news outlet. The article was originally published in MoneyControl.
