Pharmaceutical Export Promotion Council (Pharmexcil), has applauded the Annual Supplement 2005 to the Foreign Trade Policy as it aims at strengthening and further carrying forward the policy, postulates making exports as the engine of economic growth and a means of creating employment.
The Council under the Chairmanship of D B Mody, complimented the union commerce minister for putting into place and enabling a forward looking Foreign Trade Policy. An all time high level of exports equivalent to US $78 billion in the year 2004-05, registering the highest ever rate of growth of 24 per cent speaks volumes of the relevance and aptness of the policy provisions.
"The supplement 2005 to the Policy promises still better performance of the country on the export front in times to come," said Pharmexcil sources.
The Council added that the liberalization and simplification of the Export Promotion Capital Goods Scheme and Advance Licensing Scheme will surely further facilitate export of manufactured goods, services, and agriculture produce and their value added products. These measures, apart from giving a competitive edge to our exports will also make them more diversified.
Setting up of Inter State Trade Council is indeed a far sighted initiative which will help harness national resources and talents into export channels to optimize usage of emerging opportunities as the Indian Economy moves forward towards globalization, the Council stated.
Commenting on the Policy recommendations, D B Mody, chairman, Pharmexcil said that DEPB is an exporter-friendly instrument and the Council welcomes the announcement that income from sale of DEPB licenses is not liable for tax under section 80 HHC of the Income Tax Act. Pharmexcil also welcomed the PMO initiative to continue the DEPB Scheme till September 2005 and appointing of a Committee to review the same with a view to finalizing a WTO compliant alternative scheme.
The Pharmaceutical Industry, which has been a major player on the export front on a sustained basis and provides almost three million jobs (0.5 million directly and 2.5 million indirectly through the ancillary industry and distribution channels), however, feels disappointed that the policy carries no specific initiatives for it as promised. In the context of emerging dynamic developments in this sector, particularly in the field of Research & Development and Services Export like Contract Manufacturing, Collaborative Research, providing a base for clinical trials and also Health are services, the growth potential is phenomenal. The realization of export potential will also ensure growth in employment opportunities in this sector directly in the same proportions. It is hoped that this prime sector of Industries will find a place among thrust export areas soon.
Stress on simplification of procedures with a view to bringing about transaction cost reduction is a welcome development. Hopefully, the time schedules referred to in the Policy Highlights for completing EDI initiatives and achieving connectivity between all government agencies with whom exporters and importers have to interact will be achieved and maintained. This in itself would mean a great service to the cause of the country's export endeavours, said the Pharmexcil sources.