India has authorized the use of two Covid-19 vaccines, highlighting its enormous capacity to manufacture vaccines. Much of the rich world may have something valuable to learn.
Serum Institute of India is the world’s largest manufacturer of volume vaccines, founded over 50 years ago by billionaire Cyrus Poonawalla. It will probably supply not only almost all vaccines administered in India, but also many other parts of the world, once exports are allowed later in the year.
Research by Fitch Solutions shows three groups of Asian economies this year: those that can plausibly vaccinate most people in priority groups, such as health workers and the elderly by June, those who can do so by June in September and those that will last longer. India is by far the lowest income country in the first group of economies, which includes Hong Kong, China, Singapore and Malaysia. Wealthier South Korea and Thailand will take longer.
The activity of the Serum Institute requires a reliable and large internal supply of vials in which vaccines are sealed and transported, provided by companies such as Schott Kaisha and Piramal Glass. The existence of the largest vaccine manufacturer in the world helps to establish the basis of an internal network of suppliers.
Global supply chains and international trade have remained remarkably in extreme shape over the last year. There is no need to restore huge amounts of manufacturing capacity and any attempt to achieve even half the autarchy will make all parties involved – importers and exporters – less prosperous.
But countries could take a leaf out of India’s book when it comes to making crucial items that could face massive increases in demand and where national priorities come to the fore. Doing so is unrealistic for every small and medium-sized country, but production could be organized at the level of regional blocs, such as the Association of Southeast Asian Nations. The pandemic has hit Latin America harder than many other parts of the world, but its limited vaccine production means most nations there have a long wait ahead of them.
Workers at the Serum Institute of India in Pune.
Photo:
/ Associated Press
Such a company does not have to be a government enterprise. As mentioned, the Serum Institute was founded as a private company, although it cooperates closely with the government. Establishing a similar capacity could be achieved through cooperation in healthcare regulation to create large regional markets and through fair financial incentives. The principle applies as clearly to personal protective equipment as to vaccines.
Many much richer countries have worried about the lack of such vital components, as they are usually imported, and supply is now uncertain with high demand. Given the painfully slow pace at which European vaccines are being launched, the Indian program could end up as a model for the world.
Write to Mike Bird at [email protected]
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