Source: Business Standard, Jan 19, 2017
New Delhi: Indian pharmaceutical industry grew by 29 per cent to Rs 2,04,627 crore in 2015-16 from Rs 1,77,734 crore in 2014-15, while it attracted FDI of $2.25 billion during April 2014 to March 2016.
The country “is one of the largest producers of pharmaceutical products and a leading player in the global generics market, exporting nearly 50 per cent of its production”, according to the achievement report of the sector under the government’s ‘Make in India’ initiative.
“The Indian pharmaceutical industry has witnessed a robust growth in recent years growing from Rs 1,77,734 crore in FY 2014-15 to Rs 2,04,627 crore in FY 2015-16, registering a growth of 29 per cent as compared to the growth of 12 per cent from Rs 1,58,671 crore during FY 2013-14,” the report said.
On the export front, it said: “In FY2015-16, the exports of drugs, pharmaceuticals and fine chemicals was Rs 1,06,212.4 crore.”In the generics market, India exports 20 per cent of global generics, making it the largest provider of generic medicines globally.”
The report jointly prepared by the Department of Industrial Policy and Promotion and Department of Pharmaceuticals said when it came to FDI policy, 100 per cent FDI has been allowed through automatic route for greenfield pharmaceuticals projects.
“For brownfield pharmaceuticals projects, FDI has been allowed up to 74 per cent through automatic route and beyond that through government approval,” it added.
Highlighting fiscal incentives provided to promote domestic manufacturing, the report said inverted duty structure in medical device industry has been corrected.
Basic customs duty has been reduced to 2.5% along with full exemption from Special Additional Duty (SAD) on raw materials, parts and accessories for manufacture of certain medical devices with effect from January 19, 2016.