Decline of Public Sector Vaccine Manufacturing in India

For COVID-19 vaccination India has primarily relied on two private firms. During the second wave of the pandemic, when shortages were reported in some parts of the country, when desperate attempts were made to scale up production, when exports were suspended, the absence of the public sector was strongly felt. An obvious question that came up was why India with a long traditional of public sector vaccine manufacturing had to rely on only two private firms. While private vaccine manufacturers in India have made commendable progress in the last few decades, the public sector has lost its dominance and has now become a marginal player. This is not because of any inherent deficiencies of the public sector vaccine sector or lack of capabilities to deliver. The basic problem has been underinvestment and neglect by government. Particularly in situations where mass vaccination is required, it is critically important to ensure uninterrupted supplies of vaccines at affordable prices. To minimize the uncertainty associated with private sector investments, production and pricing, presence of a strong public sector is crucial. The government has aided the growth of the private sector. Similarly with proper investments and support and a re-orientation of official policies and attitudes, it is possible to revive and make the public sector a significant player