Pharma Exporters To Ease Their Way Into Five Trading Blocks

1-4 September, 2006 Pragati Maidan, New Delhi, India

Pharma Exporters To Ease Their Way Into Five Trading Blocks
Govt looks to promote pharma exports in South Asia, Gulf countries, Eastern Europe, Japan and Korea.

India’s drug majors can expect government support for easier entry into five different trading blocks some time from now.

The chemicals ministry is working with the commerce ministry to further sweeten the existing sops for exporters and to find out how pharmaceutical exports could be promoted to South Asia, Gulf countries, Eastern Europe, Japan and Korea.

The chemicals ministry estimates that given the right incentives, pharmaceuticals could emerge as one of the largest area of intra-regional trade once the South Asian Free Trade Area agreement becomes fully operational by ’16. It plans to do a detailed study on the potential of Indian pharma exports to the other six members as trade within the region expands from the current $7bn-$350bn — the total external trade in the region now.

Besides providing the right incentives, the ministry also intends to work with the governments in these countries to tackle non-tariff barriers like cumbersome registration processes. The ministry also wants the companies to religiously stick to quality norms. For this, it intends to evolve certain guidelines regarding pharmaceutical export consignments. This is to rule out instances such as the importing country returning the consignments alleging poor quality.

Now, under the trade policy, the government bears half the cost of drug registration in other countries up to Rs 25 lakh and up to 90% of the cost of air travel for holding trade fairs abroad in addition to generously contributing for setting up stalls.

The chemicals ministry would hold talks with the commerce ministry on how to make them more attractive to accelerate the Rs 15,000-crore a year pharmaceutical exports from India. Africa, Latin America, and Central Asian republics are already the focus markets eligible for export sops.

Date: 17-Jun-2006

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