The union ministry of commerce, which had set a target of $25 billion for pharmaceutical exports to be achieved in 2015, has now extended the same to 2016. The deadline is deferred because the pharma industry has categorically stated its inability to increase the exports in a scenario which is marred by impediments and inefficiencies.

The pharma industry has categorically pointed out that the government would need to take immediate steps to speed up clearances spanning from regulatory approvals to customs and pollution control departments.

Although Pharmaceuticals Export Promotion Council of India (Pharmexcil) has been on an aggressive mode to increase the Indian pharma companies’ footprint globally, it has now conceded to the need for an extension to achieve the target.

The global recession, including the subdued economic environment in India, stringent regulatory controls and the inordinate delays in clearances from Ministry of environment, DCGI office besides other related departments are stalling the export orders. This would not allow us to achieve the target by 2015 and therefore deferring the 2015 deadline to 2016 is seen more or less acceptable to achieve $25 billion target, industry sources said.

There are hurdles at every stage beginning from the lackadaisical attitude of the government officials. This has led to disillusionment amongst the pharma industry to expand operations including setting up plants or catering to export orders from many countries. It is a serious issue but the government is just not concerned, said industry sources.

Indian pharma which clocked $14 billion in exports ending March 2013, has expressed that it would be able to garner the required momentum in international sales only if the government comes forward to tackle some of the key issues facing the industry. These include highlighting the export promotional schemes across the micro small medium enterprises (MSME) and increase in Marketing Development Assistance to companies doing the turnover up to Rs.50 crore from the current Rs.15 crore.

Further, there are grave issues like pollution control clearances which requires minimum time frame of six months to two years. Besides industry is confronted with constant allegations on non-compliance to effluent treatment norms or chemical discharges. In addition, the industry is also bogged down by the archaic labour laws and shortage of skilled workforce which makes hiring impossible.

Industry sources said that export orders are time bound. The customers require on-time delivery within a short span. But sometimes it takes a long time to get several clearances from the concerned government departments, making it difficult to execute the orders and in view of that the Indian companies lose credibility.

These critical problems have been brought to the notice of the government departments including the Drugs Control General of India (DCGI). The end result has been the loss of export orders. In such a state of affairs, it makes no sense for the Ministry of Commerce to look at the pharma industry to increase the export earnings by $10 billion from the current $14 billion to 25 billion. The government needs to work out a strategy to help pharma industry to achieve the $25 billion target, Industry sources said.