2011 · Paper V · 10 marksFrequently asked

Elucidate a low volume high value product giving the example of insulin. Mention the role of Indian companies for its production.

In short

Insulin is a low volume high value product because it needs advanced recombinant biotechnology and strict quality control, yet commands high value as a life-saving diabetes drug. Indian firms such as Biocon pioneered affordable biosimilar insulin, aided by the ₹15,000 crore PLI Scheme and Andhra Pradesh's Bulk Drug Park.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
Low volume high value products such as insulin are vital due to their complexity and strategic importance. Insulin’s domestic production addresses rising diabetes prevalence and reduces import reliance, notably in Andhra Pradesh1.
Institutional Support and Capacity
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PLI Scheme for Pharmaceuticals2

With a ₹15,000 crore outlay, the PLI Scheme promotes domestic manufacturing of insulin and critical biopharmaceuticals, enhancing global competitiveness.

•

Bulk Drug Parks in Andhra Pradesh

Andhra Pradesh benefits from Bulk Drug Parks receiving up to ₹1,000 crore, providing infrastructure crucial for high-value insulin production.

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Regulatory Reforms

The new Drugs, Medical Devices and Cosmetics Bill aims to streamline biologics regulation, improving quality and global acceptance of Indian insulin.

•

Public-Private Partnerships

Indian firms collaborate with research institutions and global pharma, leveraging biotechnology expertise as seen in vaccine production.

Challenges and Market Outcomes
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Import Dependence on APIs

Indian insulin makers rely heavily on imported APIs, especially from China, affecting costs and supply resilience.

•

R&D Investment Gaps

Indian pharma’s focus on generics limits innovation in insulin and biologics development.

•

Access and Affordability

High complexity limits insulin affordability; government schemes like Pradhan Mantri Bhartiya Janaushadhi Pariyojana improve access.

Role of Indian Companies
•

Manufacturing Scale

Indian companies have expanded cGMP-compliant facilities, supporting global supply.

•

Collaborations and Access

Partnerships with multinationals and government schemes enhance insulin availability in Andhra Pradesh and nationwide.

Way Forward
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Regulatory Harmonization and PPPs

Expedite updated regulations and foster collaborations to scale insulin production and distribution.

Conclusion
Insulin’s domestic production, supported by PLI schemes and Indian biotech leadership, is crucial for India’s healthcare security and economic growth.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: Why insulin is low volume, high value. Why insulin is low volume, high value. Flow: Advanced biotechnology needed → Few firms master it → Limited output → High value per unit → Life-saving, strategic product
Diagram: Why insulin is low volume, high value

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Question from the official APPSC Group-I Mains 2011 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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