Romania has invited Indian pharma companies to set up a joint venture between an Indian and Romanian company, which will act as a 'free-custom warehouse' for bulk drugs and APIs. It is also expecting Indian help in establishing a Romanian company, which will act as a producer of active substances for local Romanian market and exports into Europe, according to the Indian Drug Manufacturers Association.
The possible market for the custom warehouse venture, according to IDMA sources is $100 million/year. Romanian pharma market is estimated at $600 million and 95 per cent of its API requirement is met through imports, predominantly from other European countries. About 75 pharma companies operate within Romania. The current direct pharma trade between India and Romania is meager.
Recently, a Romanian trade delegation held talks with IDMA officials in this regard. The matter was further discussed during the visit of Romanian President Ion Lliescu to India. Pharmaceuticals, oil and gas, IT, heavy engineering and power are major sectors on which Romania wants to collaborate with India, according to Dorin Refca, counsellor (Economic Affairs), Embassy of Romania in India.
"Romania will offer concessions to Indian companies in par with the WTO regulations. We will offer advantages in the form of free trade zones and other tax advantages," said Refca. Like its other western counterparts, Romania is also looking for non-expensive yet high quality APIs from India, he added.