What is Bulk drug park and why Himachal Pradesh vying for its allotment?

Himachal Pradesh has been leading in drug manufacturing. It is said that more than one-fourth of India’s formulation drugs are produced and supplied from Baddi-Barotiwala-Nalagarh (BBN) Himachal’s industrial belt bordering Chandigarh.

It is Asia’s biggest pharmaceutical hub. Pharma companies in Himachal consume nearly Rs 27,000 crore of Active Pharmaceutical Ingredient (API) either procured from other states like Tamil Nadu, Karnataka, West Bengal, Gujarat, Odisha, Maharashtra, Uttar Pradesh, and Haryana, or imported.

It is one of the states vying for the allotment of a bulk drug park under a central government scheme. The state government has identified around 1,400 acres in Una district to set up a bulk drug park

According to Indian Express, A bulk drug, also called an active pharmaceutical ingredient (API), is the key ingredient of a drug or medicine, which lends it the desired therapeutic effect or produces the intended pharmacological activity.

Although, India has one of the largest pharmaceutical industries in the world (third largest by volume), this industry largely depends on other countries, particularly China, for importing APIs, DIs and KSMs.

It is said that bulk drug park will benefit the existing pharmaceutical companies by cutting down their transportation costs, taxes, and other duties. The price of the drugs manufactured at the BBN pharma hub will come down drastically