Government has not permitted exports of all drugs but only of paracetamol that is globally essential for treating COVID-19. The DGFT has scrapped restrictions on export of formulations made of paracetamol. However, it has continued to maintain barriers on export of the active pharmaceutical ingredient (API) because of concerns of supply from China. In the case of APIs, India needs to protect its risk of getting its industry disrupted by the unstable supply chains from China. That is more of a business decision. Even the decision to export paracetamol was only taken by the government after assurances from the Indian pharmaceutical industry of enough manufacturing capacity to maintain stocks of the drug. APIs can still be exported but it will be regulated keeping in mind the domestic need. This move should be largely positive for most of the pharma companies with Lupin and Cipla likely to benefit the most from this move.