The foreign trade policy announced by Commerce Minister Anand Sharma has extended the export obligation period (EOP) for advance authorisations for pharmaceutical products from the existing six months to three years. Pharmaceuticals have also been included in the Market Linked Focus Product Scheme (MLFPS), which will benefit exporters to 13 identified markets.
Domestic drug makers felt the extension of export obligation period would help drug exporters import raw materials and utlise the tax benefits for a period of up to three years for exporting finished goods. They also wanted the extension to be applicable for dual use substances.
The inclusion of drugs in MLFPS, which will benefit exporters to 13 identified markets such as Kenya, Nigeria, Brazil, Australia and New Zealand. Most of the Indian drugmakers export their products to these nations.
“These markets have so far not been tapped by the industry. The MLFP scheme will help boost India’s drug exports to these untapped but growing markets, which are generic, like India,” said TS Jaishankar, chairman, Confederation of Indian Pharmaceutical Industries.
