India and China have formed the joint working group (JWG) to look into not only trade-related issues but also investments in the areas of pharmaceutical and other industries.
The decision for the JWG was taken at the meeting of India-China Joint Group on Economic Relations, Trade, Science and Technology held here recently. The group is expected to come out with a report before November this year.
The issue of growing trade deficit between the two countries and the exports of pharmaceuticals also featured the discussion between the Union Commerce and Industry Minister Anand Sharma and Chinese Commerce Minister Chen Deming.
Currently, China and India are the strongest in the pharmaceuticals market. China is the largest manufacturer of active pharmaceutical ingredients(APIs) and intermediates besides having a well established pharma packing industry developing novel designs.
“We want to buy more from India to have a more balanced trade. We encourage Indian industry to promote their products in our country,” said Chinese Commerce Minister Deming.
“We have been assured by China of support on the issues of trade deficit and greater access to the Chinese market for the Indian pharmaceuticals sectors, apart from Information technology (IT) and ITES services,” Commerce and Industry Minister Sharma said.
India has invited Chinese companies to invest in the proposed National Investment and Manufacturing Zones (NMIZs), Further both countries also agreed to work on a five-year plan on economic cooperation, proposed by Deming. “We have identified key areas and nodal authorities who will be working to put the development plan,” Commerce & Industry minister Sharma said.
Currently, investments from China are to the tune of around $580 million. In 2011-12, the total bilateral trade between the two countries stood at US$ 75,457.42 million compared to US$ 59,000.36 million a last year. During the last fiscal, exports from India to China stood at $17,902.98 million while imports were at $57,554 million. The provisional trade deficit for 2011-12 was at $39,651.46 million.
In April, this year, the two countries went on to strengthen the business environment under the Strategic Economic Dialogue (SED) which also called for larger market access for pharmaceuticals. Currently, China and India are the strongest in the pharmaceuticals market globally.
Moreover China is one of the world’s largest pharmaceutical markets globally with sales of around $52.3 billion.
“India pharma industry has been lobbying with the government to address of issues of Export Obligations’ and take a re-look on ‘Norm Fixation’ and rationalize the registration process and fee, said Anjan K Roy, managing director RL Fine Chem.
According to Espicom Business Intelligence, emerging economies of Brazil, Russia India and China represent a combined pharmaceutical market of US$ 160.8 billion at retail prices. The top 10 local pharmaceutical manufacturers, including China Pharmaceutical Group, Harbin Pharmaceutical Group, North China Pharmaceutical and Shanghai Pharmaceuticals, have total revenue of around US$ 10.0 billion in 2010.