Pharmaceutical industry deals with the development of drugs by doing R&D to use it as medication for the patients to cure them. It plays the vital role in economic growth of the country. This sector has great contribution in the export of India. India plays the role of leader in pharmaceutical sector because it has large number of scientists and engineers to perform the research and development in this sector. India supplied 80% of antiretroviral drugs in international market to treat AIDS which stands for Acquired Immune Deficiency Syndrome.
This sector shares 20.70 billion US$ in the exports in FY 2020 which includes the following –
- Ayush and herbal products and surgical
- Biological
- Drug formulation
- Intermediates drugs
- Bulk drugs
The Cabinet approved to extend the foreign trade policy various relaxations are given to pharmaceutical industry such as allow FDI upto 100% to manufacture medical equipments with certain conditions.
Jubilant Generics Ltd a Indian company signed agreement with Gilead Sciences Inc a USA based firm to manufacture and sell Remdesivir to fight with Covid – 19.
Indian drugs exported in US will get boost as branded drugs will become off patent.
Government launched Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) for providing affordable medicines. Under EPCG Scheme exporters are allowed to import machinery, medical devices without paying custom duties.
Under Advance Authorisation Scheme DGFT issue the license to import duty free raw materials required to manufacture export goods.
Government Initiative to boost pharma sector in India:-
- For Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) Government allocated Rs 6,400 crore for health insurance.
- Government launched EPCG Scheme to provide license to the exporter to import capital goods without paying custom duty.
- Government launched National Health Protection Scheme which is the largest healthcare programme in the world.
- India may allocate Rs 1 Lakh Cr fund to boost and promote the manufacturing of pharmaceuticals ingredients by 2023.
- The Government allocated Rs 65,012 crore o the Ministry of Health and Family Welfare and Rs Rs 34,115 crore to towards the National Health Mission for rural and urban people.
- Government has the vision for pharma industry to be a global leader in drug manufacturing.
- Government launched Advance Authorisation scheme to allow duty free import of raw materials required to manufacture the export goods. The pharma companies which wants to use imported materials to manufacture drugs can take Advance License by doing the application on DGFT portal. They have to do the application online and need to attach few documents, DGFT review the application and issue the license.
Government of India launched MEIS Scheme to promote the goods export from the country by providing incentive in the form of license which can be used in waiver of custom duty.
