MILAN: India's pharmaceutical and chemical manufacturers are seeing a growing opportunity as global companies look to diversify supply chains beyond China. For many small and mid-sized companies (MSMEs), which account for around 40-50% of the sector’s production value, however, the bigger challenge is not finding demand but building the scale, technological capabilities, regulatory expertise and infrastructure needed to capture it.
Officials from Indian pharmaceutical and chemical companies attending CPHI Milan told The Economic Times Digital that the China+1 opportunity is indeed real, but India's ability to convert that opportunity into sustained export growth remains constrained by a set of structural problems. And the most persistent concern is what several companies referred to as a “missing middle” in India's industrial ecosystem.
