The Union commerce ministry is likely to address the persisting demands by the pharmaceutical industry on the exports front in the form of incentives in the forthcoming foreign trade policy, it is learnt.
The sources in the ministry said it had been receiving several representations from the industry and also the agencies like the Pharmexcil, especially in the wake of declining exports from the country. The concerns will be addressed in the new foreign trade policy which would streamline the entire exports patterns. The policy also to be crucial as the first from the incumbent Narendra Modi-led government.
Commerce secretary Rajeev Kher, who was handling the pharmaceutical sector as the joint secretary earlier in the ministry, is fully aware of the scenario and is expected to consider the demands by the exporters favourably. The fears of the industry on the free trade agreements, those signed and those in the pipeline, will also be addressed in the policy.
Some of the persisting demands by the industry included raising of market development assistance and reimbursement of registration costs, apart from direct subsidies. They were also pressing for 12% rebate on export as being done on import. There is disparity on export and import benefits even though the import is meant for exports, they claimed. Industry wants the MAI support to be raised from Rs. 50 lakh to Rs. 1 crore, apart from special package for regulated markets. They were also looking for special grant of Rs. 1 crore for the first time entrant.
The commerce ministry is for maintaining and enhancing market share where India's presence is already robust such as the North America, European Union and Africa. Even within groups of countries such as European Union and Africa, identify those countries where the rate of growth and market share have been substantially low.
The ministry hopes that the pharma exports would improve, reclaiming the lost ground in the recent past, once the policy is in place. Exports posted a negligible increase to $14.8 billion in 2013-14 against $14 billion in the previous year, as exports from big players such as Ranbaxy and Wockhardt took a hit due to quality issues raised by the US Food and Drug Administration (US FDA), along with several other non-tariff barriers.