The exports of drugs, pharmaceuticals and fine chemicals for the year 2008-09 has registered a growth of about 29 per cent over the last year at Rs.39,538 crore (around US$ 9.35 billion), union minister of commerce and industry Anand Sharma said. He was addressing the Indo-Africa Pharma Business Meet in Hyderabad.
"In recent times the Indian pharmaceutical sector has emerged as one of the major contributors to Indian exports with export earnings rising from a negligible amount in early 1990s to Rs 29,139.57 crore (US$ 7.24 billion) by 2007-08. The exports of drugs, pharmaceuticals and fine chemicals of India have grown at a compounded annual growth rate of 17.8 per cent during the five-year period 2003-04 to 2007-08", the minister added.
Sharma stated that in the area of tablets and capsules, injectables and infusion, oral solutions, ointments and creams, Indian companies have established their lead in most of the markets including Africa. He further added that the growing export from India to African countries has started causing concern amongst multinational companies who in turn have started a campaign that Indian generic medicines are counterfeit and substandard.
Recognizing the contribution of Indian pharmaceutical industry in exports of the country, the minister informed that several benefits have been extended to the industry in the Foreign Trade Policy announced recently like (i) Additional resources have been made available under the Market Development Assistance Scheme and Market Access Initiative Scheme. Pharmexcil, the Export Promotion Council has been provided funds for Brand Promotion of Indian pharmaceutical industry in Africa under MAI Scheme. (ii) Incentive available under Focus Market Scheme has been raised from 2.5 per cent to 3 per cent. Pharma sector will also benefit with this. (iii) Incentive under Focus Product Scheme has been raised from 1.25 per cent to 2 per cent. (iv) Pharmaceutical has been included in Market linked Focus Product Scheme. Thus exports to Algeria, Egypt, Kenya, Nigeria, South Africa and Tanzania will be eligible for benefit under this Scheme. (v) Zero duty has been introduced under EPCG Scheme for aiding technological upgradation for pharma sector also.
The 3-day Indo-Africa Pharma Business Meet from September 25 to 27 is being attended by drug regulatory authorities from African countries, viz., South Africa, Kenya, Nigeria, Ghana, Zambia and Uganda along with the Health Minister of Kenya and DG-NAFDAC, Nigeria. During the event, apart from Buyer-Seller Meet, Drug Controller General of India will make a presentation on Drug Regulation Mechanism in India before the Drug Regulators of African countries.
Sharma also distributed awards to leading exporters of the pharma sector. Chief minister of Andhra Pradesh K Rosaiah was present at the function.
The minister also announced the government of India's decision to establish National institute of Design in Hyderabad as a mark of respect to the departed chief minister Y S Rajshekhar Reddy.