Q. With reference to Active Pharmaceutical Ingredient (API), consider the following statements:
1.It is the biologically active component of a drug product that produces the intended health effects. 
2.Raw materials for most of the API intermediates are currently not produced in India.
3.Indian APIs are on an average 20% less expensive than those manufactured in China. 
Which of the statements given above is/are correct?

[A] 1 and 2 only

[B] 1 only

[C] 2 and 3 only

[D] 2 only

Answer: A
Notes:

Explanation –

Statement 1 and 2 are correct. API is the biologically active component of a drug product that produces the intended health effects. Raw materials for most of the API intermediates are currently not produced in India.

Statement 3 is incorrect. Indian APIs are on an average 20% more expensive than those manufactured in China.

Source: ForumIAS