How India became the World's Pharmacy

Thinking Global

How did India become the world's leading producer of generic medicines? This video explores the powerful history behind India's pharmaceutical industry — from anti-colonial struggles and state-led industrial policy to global solidarity and access to affordable medicine. Discover how visionary leaders like Nehru and Indira Gandhi transformed India into the “pharmacy of the Global South.”  📌 Don’t forget to like, share, and subscribe for more content on global politics and economic history!  #India #Pharma #Health,#Industry #Geopolitics #Economics #GlobalSouth #IndustrialPolicy #BRICS

Transcript

00:00India is the largest exporter of generic medicines in the world, but that didn't happen by chance.

00:06Behind it is a story of colonial trauma, state intervention, and a global vision of health

00:12sovereignty. A story that begins in 1947 with independence. Today, India is the world's largest

00:20producer of generic medicines, supplying over 50% of global vaccine demand and saving millions of

00:27lives with affordable drugs. But how did a country that relied on pharmaceutical imports at its

00:33independence in 1947 transform into the pharmacy of the world? So let's take a trip back in time and

00:40see how things unfolded. So after independence, India inherited a pretty fragile healthcare system

00:46that was completely dependent on Western pharmaceutical multinationals. Our first key

00:52figure is Jawaharlal Nehru, India's first prime minister. He was a fan of industrial policies

00:58aimed at reducing imports and increasing self-sufficiency. But he wasn't particularly

01:04keen on the pharma sector. You see, he thought it was a little too dependent on science and technology,

01:10which were better left to the private sector. As a result, India continued to import most of its drugs

01:17and even some basic ingredients like aspirin. In 1950, over 90% of medicines were imported and only

01:257% of bulk drugs were made domestically. It was an embarrassing situation for a country of India's

01:31size and population. So much so that one American publication said, India is 40 years behind the US in

01:39drug production. Now this didn't sit well with Indians, especially since they were constantly being

01:45told to buy expensive imported drugs instead of locally produced ones. But then came the twist.

01:52Countries like the US and the UK started pressuring India to maintain drug patents and keep the pharma

01:58sector under foreign control. Why? Because if India developed its own pharmaceutical industry,

02:05it could become a competitor. And who wants that? Not the imperialists.

02:09By the early 1960s, Nehru's government had established five state-owned pharmaceutical

02:16companies, including the influential IDPL, Indian Drugs and Pharmaceuticals Limited. These companies

02:23produced life-saving drugs, tetracycline for the 1994 plague outbreak, doxycycline for leptospirosis in

02:312005, and chloroquine for the decades-long battle against malaria. But the real magic happened when public

02:39knowledge met private ambition. Anyway, in 1970, Indira Gandhi's government and her health minister,

02:47Dr. Prasanta Chandra Mahalanobis, decided enough was enough. They passed the Indian Patents Act,

02:54which allowed for the production of copies of foreign drugs as long as the manufacturing process

02:59differed from the original. This opened the floodgates. Suddenly, companies like CIPLA,

03:05Dr. Reddy's, and Ranbaxy popped up churning out affordable generics. And by 1980, India was making

03:1370% of the medicines it needed. But this success didn't come without its share of hurdles. The U.S.,

03:19along with other Western powers, exerted significant influence on the Indian government threatening

03:24sanctions over what they termed as patent violations. Yet India stood firm, refusing to be

03:31bullied. And let me tell you why they had every right to resist. The year is 1990, and the world is

03:39in the grip of an emerging health crisis, the full scope of which wouldn't be apparent for several more

03:45years. We're talking about the AIDS pandemic. But that's not news. What might be surprising, though,

03:51is that while antiretroviral drugs were available in the West, costing around $10,000 per year,

03:58they were virtually inaccessible to most of the developing world due to their high cost.

04:03India saw this crisis as an opportunity to step in and make a difference. In 2001,

04:10India's pharmaceutical industry made a groundbreaking move. It began producing generic versions of these

04:16life-saving drugs for just $1 per day per pill. This move was a game-changer. It provided a ray of

04:24hope to millions in Africa and Latin America who were previously priced out of accessing essential

04:30medications. But who was behind this move? Enter our next key figure, Yusuf Hamied. He was the chairman

04:38of CIPLA, one of India's leading pharmaceutical companies. When the world was grappling with the

04:44impact of the AIDS pandemic, he dared to go against the might of big pharma. He understood the potential

04:51of India's pharmaceutical industry to produce affordable generic drugs for those in need,

04:57and he took a bold stand. When other companies hesitated, CIPLA stepped up, offering to supply

05:03the anti-AIDS drug at a significantly reduced price of just $1 a day. This decision was not just a

05:11business move. It was a humanitarian gesture. At the time, the cost of antiretroviral therapy in the

05:18developing world was around $12,000 per person per year. But Hamid's offer brought that down to just

05:24$360. This drastic reduction in cost made a huge difference in providing accessible treatment to

05:32many more people. In the following years, Yusuf Hamid's efforts paid off immensely. By 2005, India was

05:40supplying 80% of the drugs used to treat HIV-AIDS to poor nations. His actions didn't go unnoticed.

05:47He received numerous accolades, including the coveted Padma Bhushan from the Indian government,

05:53and the rank of Officer de l'Ordre National du Mérite from the French government. His story is a

06:00testament to the power of compassion and the impact one person can have on the world.

06:06Despite all the good work India was doing, the US and the EU weren't exactly thrilled about India's

06:12stance on patents. They kept accusing India of pharmaceutical piracy and unfair competition.

06:19But India stayed strong. It was clear that they would rather prioritize the health of their people

06:25and other developing countries over Western complaints.

06:30Then came the ultimate test, the COVID-19 pandemic. Indian firms played a pivotal role in vaccine diplomacy

06:37during the pandemic, manufacturing Covishield, the Oxford-AstraZeneca vaccine, among others.

06:44India became a global distribution hub, exporting vaccines to over 100 countries.

06:51However, a spanner was thrown in the works when the US export banned raw materials to India in April 2021,

06:59impacting vaccine production. But India managed to bounce back.

07:03It diversified its sources of raw materials and resumed exports in record time.

07:09Today, India stands tall as the world's largest producer of generic drugs.

07:15It exports to more than 200 countries and earns around $50 billion annually from its pharma industry.

07:22India has clearly demonstrated that it can hold its own in the global market

07:26without compromising on quality or affordability.

07:30This begs the question, why should profits take precedence over people's lives?

07:36The incredible journey of India from a nation that couldn't produce its own medicines

07:40to becoming the world's generic drug powerhouse is a remarkable tale.

07:46It's a testament to what can be achieved when a country dares to dream big,

07:51invests in science, and prioritizes the health and well-being of its citizens.

07:56The story of India also holds valuable lessons for the rest of the world,

08:01especially the global south.

08:03It shows how standing up to imperialist pressures and taking bold steps to secure public health

08:09can lead to positive outcomes.

08:11One-third of the world's population still lacks access to essential medicines.

08:17But India's journey serves as a beacon of hope,

08:20proving that with determination and the right policies,

08:23we can overcome even the most daunting challenges.

08:27What began as a response to colonialism became a model for health sovereignty,

08:32not just for India, but for the entire global south.

08:36In a world where access to medicine is still a matter of life and death,

08:40India's pharmaceutical revolution reminds us,

08:43another model is possible.

08:45And don't forget, like the video and subscribe the channel

08:48to keep thinking the world how it really is.

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