ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Reji K Joseph

Policy Reforms in the Indian Pharmaceutical Sector since 1994

Liberalisation measures in the pharmaceutical sector have brought about major changes in the industrial licensing policy, import restrictions, foreign direct investment and production controls. It was feared that firms would shift from indigenous production to imports, especially of bulk drugs, and this concern was aggravated with the change in the patent law. This paper finds that these apprehensions have only partly come true. Exports of formulations have grown faster while their imports have not registered any jump, keeping the balance of trade positive. But there has been a decline in domestic production of bulk drugs and a growth in imports because the industry is moving away from intermediates and is focusing on bulk drugs at the high end of the value chain.

Estimating India's Trade in Drugs and Pharmaceuticals

There is the view that in the post-1991 period, India's exports of drugs and pharmaceuticals have grown rapidly - thereby confirming that India has much to gain by conforming to global drug patent standards. But a close reading of the data shows that the growth of the main drug exports has slowed, while that of imports - especially formulations - has accelerated.