Question : What were the main factors that led to the cessation of Penicillin-G production in India in the 1990s, and how did the influx of cheaper alternatives, primarily from China, contribute to this decline?


Question : How did supply chain disruptions and China’s dominance in Penicillin-G production during recent times, especially highlighted by the COVID-19 pandemic, influence India’s decision to resume domestic production?

GS-2 Health : GS Penicillin Production in India 

India to Resume Penicillin-G Production:

  • After 30 years, India restarts domestic production of Penicillin-G, an antibiotic.
  • Penicillin-G treats infections but is administered via injection due to poor absorption.

Why Production Stopped?

  • 1990s: Cheaper alternatives (mainly from China) flooded the market.
  • Recent supply chain disruptions and China’s low production highlighted the need for domestic production.
  • COVID-19 pandemic exposed India’s dependence on imported APIs (Active Pharmaceutical Ingredients).

Challenges of Penicillin-G Production:

  • Complex and expensive fermentation process discourages domestic production.
  • Government’s “Make in India” initiative initially faced hurdles.

Why Resume Production Now?

  • India has high rates of rheumatic fever requiring penicillin treatment.
  • Broad-spectrum substitutes harm essential gut bacteria.

Government’s Production Linked Incentive (PLI) Scheme:

  • Offers financial support to companies producing Penicillin-G and other essential drugs.
  • Aims to reduce dependence on imported APIs.
  • Balancing affordability and long-term sustainability remains a challenge.


  • Resuming Penicillin-G production is a positive step towards self-reliance in bulk drugs.
  • Ensuring affordability and long-term sustainability are crucial for success.



Question : What were the updated poverty lines according to the SBI report for rural and urban areas in 2022-23, and how did they compare to previous figures?


Question : What were the notable changes in rural and urban poverty rates from 2011-12 to 2022-23 according to the HCES, and how do they differ when using the Tendulkar and Rangarajan poverty lines?


GS-3 Mains : Economy : Summary of Household Consumption Expenditure Survey (HCES), 2022-23 Insights:

  1. Trends in Poverty:
  • SBI report updates poverty lines: Rs 1,622 rural, Rs 1,929 urban.
  • Rural poverty down from 25.7% (2011-12) to 7.2% (2022-23); urban down from 13.7% to 4.6%.
  • Poverty ratio: Tendulkar (6.3%), Rangarajan (10.8%).
  • HCES changes: item coverage, questionnaire, data collection method.
  • NSSO, NAS difference: widened over time, implications for poverty ratio.
  1. Difference between NSSO and NAS:
  • NSSO, NAS aggregate private consumption expenditure difference widening.
  • Implications for poverty ratio computation.
  • NSSO Advisory Group analysis needed.
  1. Consumption Patterns & CPI Implications:
  • Rural food share decline: 52.9% (2011-12) to 46.4% (2022-23); urban from 42.6% to 39.2%.
  • Cereals share decline: rural (10.8% to 4.9%), urban (6.7% to 3.6%).
  • Increase: fruits, beverages, processed food; decrease: vegetables.
  • Non-food items increase: toiletries, household items, conveyance, durable goods.
  • CPI basket weight adjustments needed based on new consumption patterns.
  • Food share decline positive, but impact on inflation questioned.
  • Monetary policy implications: new price index consideration.


  • New consumption survey necessitates new indices.
  • Fresh poverty estimates due to survey insights.
  • Inflation and monetary policy affected by consumption changes.

Key Observations:

  • Poverty decline significant, but methodology differences impact ratios.
  • NSSO, NAS difference widening, warrants deep analysis.
  • Consumption pattern shifts prompt CPI weight adjustments.
  • Food share decline may temper inflation, but impact uncertain.
  • Monetary policy committee to consider new price index for policy decisions.


  • Policy adjustments required for accurate poverty estimation.
  • Improved data collection methodologies crucial for reliable statistics.
  • CPI revisions essential for effective inflation management.
  • Monetary policy formulation to accommodate changing consumption patterns.

Note: The summary encapsulates key findings and implications from the HCES 2022-23, addressing poverty trends, NSSO-NAS disparities, consumption pattern shifts, and CPI implications.

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