Allowing 74 Per Cent FDI in Pharma Sector

Allowing 74 Per Cent FDI in Pharma Sector 

FDI in Brownfield pharma sector has been permitted upto 74% under automatic route; and FDI beyond 74% and upto 100% is allowed under Government approval route. The move to permit 74% FDI under automatic route in Brownfield pharmaceutical sector is aimed at attracting required capital, international best practices and latest technologies in the sector. Further, 100% FDI under automatic route is permitted for Greenfield pharma sector.

The Government while reviewing FDI policy on pharma sector has put in place necessary safeguards by providing that non-compete clause would not be permitted. This will enable Indian promoters to operate in the same line of business in new ventures. Further, to ensure domestic availability of essential medicines and drugs; and to maintain deployment of adequate capital in R&D, extant FDI policy on the sector mandates specified level of production of National List of Essential Medicine drugs and extent of R&D expenditure to be maintained by the investee company.

Both Greenfield and Brownfield investments are in line with the initiative of ‘Make in India’ and thus there is no proposal under consideration of Government to restrict such investments only to Greenfield project.


Anti-Dumping Duty on Imports of a Chemical

Directorate General of Anti-dumping & Allied Duties (DGAD) conducts anti-dumping investigations on the basis of duly substantiated petitions filed by domestic industry alleging dumping of goods into the country causing injury. The basic intent of the anti-dumping measures is to eliminate injury caused to the domestic industry by the unfair trade practices of dumping and to create a level playing field for the domestic industry vis-a-vis dumped goods by re-establishing a situation of open and fair competition in the domestic market.

DGAD initiated an anti-dumping investigation in respect of imports of Purified Terephthalic Acid (PTA) from China PR, Iran, Indonesia, Malaysia & Chinese Taipei on 18.6.2015. Based on DGAD’s final findings dated 9.6.2016, Department of Revenue has imposed anti-dumping duty in the range of US$ 85.87 to 168.76 per MT on imports of aforesaid chemical from China PR, Iran, Indonesia, Malaysia & Chinese Taipei on 5.7.2016.


Increase in Exports

The merchandise exports from the country have registered an increase of 1.27 percent in Dollar terms (6.72 percent in Rupee terms) in June 2016 compared to the same month of the previous year.

The details of key efforts made by Government for increasing exports are as follows:

i The New Foreign Trade Policy (2015‐20) was announced on 1st April, 2015 with a focus on supporting both manufacturing and services exports and improving the ‘Ease of Doing Business’.

ii In the light of the major challenges being faced by Indian exporters in the backdrop of the global economic slowdown, the envisaged revenue outgo under MEIS was increased from Rs. 18000 Crore to Rs. 21000 Crore in October 2015 with accompanying enhancement in benefits on certain products and inclusion of certain additional items. On 04.05.2016, the Government has extended the market coverage to all countries in respect of 2787 lines. Hence Landing Certificates shall not be required under MEIS w.e.f 04.05.2016. This step has been taken as part of ‘Ease of Doing Business’ and reduction of Transaction Cost of exporters. Accordingly, revenue foregone under the scheme has been revised from Rs.21000 Crore per annum to Rs.22,000 Crore per annum.

iii The Government is implementing the Niryat Bandhu Scheme with an objective to reach out to the new and potential exporters including exporters from Micro, Small & Medium Enterprises (MSMEs) and mentor them through orientation programmes, counselling sessions, individual facilitation, etc., on various aspects of foreign trade for being able to get into international trade and boost exports from India.

iv By way of trade facilitation and enhancing the ease of doing business, Government reduced the number of mandatory documents required for exports and imports to three each, which is comparable with international benchmarks. The trade community can file applications online for various trade related schemes. Online payment of application fees through Credit/Debit cards and electronic funds transfer from 53 Banks has been put in place.

v Further, the Government continues to provide the facility of access to duty free raw materials and capital goods for exports through schemes like Advance Authorisation, Duty Free Import Authorization (DFIA), Export Promotion Capital Goods (EPCG) and drawback / refund of duties.


Dumping of Steel in the Country

On the basis of the petition filed by M/s Steel Authority of India Ltd., M/s JSW Steel Limited and M/s Essar Steel India Ltd, Directorate General of Anti-dumping & Allied Duties (DGAD) has initiated an anti-dumping investigation on imports of Hot rolled flat products of alloy or non-alloy steel in coils of a width upto 2100mm and thickness upto 25mm and Hot-rolled flat products of alloy or non-alloy steel not in coils (commonly known as sheets and plates) of a width upto 4950mm and thickness upto 150mm originating in or exported from China PR, Japan, Russia, Korea RP, Brazil and Indonesia on 11.4.2016.

In addition to the above, DGAD has also initiated anti-dumping investigation concerning Cold rolled/cold reduced flat steel products of iron or non-alloy steel, or other alloy steel, of all widths and thickness, not clad, plated or coated from China PR, Japan, Korea RP & Ukraine on 19.04.2016; Wire Rod of alloy or non-alloy Steel from China PR on 02.06.2016; and Colour coated/pre painted flat products of alloy and non-alloy steel from China PR and EU on 29.06.2016.

On prima-facie evidence submitted by domestic industry, the dumped imports have adversely affected the domestic industry on parameters like decline in sales, profits, output, market share, productivity etc. The investigation is under progress and the quantum of dumped imports/dumpng margin in respect of these countries will be determined after examination of the submissions made by all the interested parties from these countries during the course of investigation and the findings will be issued accordingly.


Development of IPAB, Chennai

            With a view to strengthen the Intellectual Property Appellate Board, Chennai, a Plan Scheme named “Modernization and Strengthening of IPAB” was approved at a  total cost of Rs. 14.70 crores under the 12th Plan. The proposed scheme included provisions for construction of permanent building of IPAB at Tondiarpet in Chennai, creation of additional posts and upgradation of infrastructure facilities.

 The details of total amount of funds allocated to IPAB during the last three years is as under:-                          
               (In Rs. Crores)
Year      Funds released  Funds utilized
2013 -14  3.31            3.09
2014 -15  6.64            4.08
2015 -16  4.00            3.96

   Out of 30 sanctioned posts in IPAB, 12 posts are presently vacant. While one of the posts of Library Information Officer has been deemed abolished, steps have already been initiated to fill up the remaining vacant posts, as under:

   Proposal to fill up the posts of the Chairman and the Technical Member (Patents) are under consideration.

·  The posts of the Vice Chairman and Technical Member (Trade Marks) will be filled up keeping in view the judgment of the High Court of Madras in the case of “Shamnad Basheer Vs Union of India and others”.

· The matter of recruitment to the posts of Deputy Registrar and Court Officer has been taken up with the Union Public Service Commission.

The remaining five posts, one each of Private Secretary, Sr. Hindi Translator, Stenographer Grade C and two posts of LDC, are being advertised.

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