Pharma exports: FTP promises to address problems abroad

With Indian pharma companies facing problems in exports to countries like Japan and China, the new Foreign Trade Policy seeks to address issues related to non-trade barriers and regulations faced by them abroad.
India aims to double its exports of goods and services to USD 900 billion by 2019-20.
The policy said that one of the focus areas over the next five years would be on promoting exports of high value products with a strong domestic manufacturing base including engineering goods drugs and pharmaceuticals.
"The challenges posed to the pharmaceuticals sector by NTBs (non-tariff barriers) in Japan and regulatory hurdles in China have to be addressed," it said.

Despite India implementing a comprehensive free trade deal with Japan, Indian pharmaceutical companies face procedural problems such as tedious registration process in that market.
India's share is less than one per cent of total Japanese pharmaceutical market, which is second largest in the world.

Similarly in China too, the domestic exporters face regulatory hurdles. India has asked them to give greater market access to the products.
"Market access and non-tariff barriers block India's exports of pharmaceuticals...(they) are unable to make a breakthrough in China's highly controlled and, at times, opaque SOE (State Owned Enterprises) business," it said.
The FTP also said a composite programme for promotion of healthcare products and services will be conducted in various regions to showcase and market India's unique strengths.

"A track and trace policy for all exports of medicinal products will be effective from 1 April 2015," it added.
The government had asked pharmaceutical companies to build
track and trace capability for their exported medicines using barcode technology at three levels of packaging primary, secondary and tertiary.
A barcode helps in tracking and tracing of origin of drugs, which in turn helps in minimising the chances of genuine drugs being considered spurious, sub-standard or counterfeit.
The steps in the FTP assumes significance as India's exports over USD 10 billion worth of drugs annually and is also known as a global hub of generic medicines. The size of the domestic industry is estimated at USD 20-22 billion.

India is now also home to the world's fifth largest generics maker following merger of Ranbaxy with Sun Pharma.
Branding campaigns are also being planned for promoting exports of pharmaceuticals, it said, adding high potential for the sector exists in markets including Europe, Australia, Russia, South Asia and the CIS region.
The government, it added, will run special programmes for trade promotion in Japan in identified sectors such as pharmaceuticals.