Hyderabad, Sep 30: The Indian Drug Manufacturers Association has asked the government to allow 100 per cent FDI in the pharma sector, but with riders.
IDMA secretary general Daara Patel said here today: “If we want funds, if we want to be seen in the global arena as fair competitors, if we do not want to be bothered by the WTO rules we should allow FDIs. But certain checks and balances have to be in place,” he said.
He said, Indian companies would struggle to grab opportunities that would arise when almost $ 30-40 billion drugs become off-patented in the next 3-4 years worldwide without adequate support from the Centre. Patel said the industry may face fierce competition from China and Brazil as both nations are gearing up for a pie.
“Competition is very high and countries like Brazil and China in the fray. Its going to be an uphill task for us. But if we have proper infrastructure in place, work in unison and get proper support from the government I don't think we will lag behind,” Patel told reporters here.
Despite the fact that Chinese API (Active Pharma Ingredient or Bulk Drugs) material is not as good as Indian APIs, other nations are tempted to buy them due to the price advantage.
“The government should support the industry in terms of providing better facilities for R&D. They must support the API industry, which is not happening. Today we are facing heat from China despite the fact that Chinese material is not as good as Indian ones in APIs,” he explained.
IDMA submitted a paper to the Union Government in which the pharma body requested that land should be provided to them at a cheaper price like China does, while interest rates and transaction cost should also be brought down.
The Association also urged support from the government in setting up effluent treatment plants. PTI
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