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

Sudip ChaudhuriSubscribe to Sudip Chaudhuri

Import Liberalisation and Premature Deindustrialisation in India

Liberalising imports by reducing tariffs and removing non-tariff barriers has been one of the most important aspects of the economic reforms pursued in India since the 1990s. The idea was to expose domestic enterprises to international competition to enhance efficiency and promote growth. But rather than promoting efficient growth, this paper shows how import liberalisation has damaged the domestic sector. In the absence of adequate government support, the private sector in manufacturing could not perform the role expected of it. Rejuvenation of the manufacturing sector requires a fundamental reorientation of the role of government.

The Larger Implications of the Novartis Glivec Judgment

The Supreme Court judgment on the Novartis-Glivec case is remarkable because it has gone beyond the specific technical and legal issues surrounding patents and has put the matter in a much larger political and economic perspective. The deeper implication of the judgment is that it is not only justified to deny patents when incremental innovation is trivial as in the Glivec case. The judgment has linked the entire question of patenting with net benefits to society and has highlighted the relevance of specific conditions of a country for deciding the appropriate patent regime. What the judgment says and what it implies has tremendous significance for the patent regimes in developing countries beyond the secondary patenting issues.

Manufacturing Trade Deficit and Industrial Policy in India

The manufacturing trade balance in India did not worsen after the economic reforms started in 1991. This was because of the successful growth of industries such as pharmaceuticals which the earlier planning strategy helped to develop. The reforms nevertheless changed the structure of demand in favour of capital goods such as new types of telecom equipment. But they did not help the domestic manufacturing of these goods. Indeed, the underdevelopment of such industries is the main reason why the manufacturing trade deficit has worsened since the early 2000s.

Multinationals and Monopolies

In January 2005, drug product patent protection was reintroduced in India to comply with the agreement on Trade Related Aspects of Intellectual Property Rights. How are the multinational pharmaceutical companies responding to the new policy environment? Is India likely to see monopolisation of the industry and high prices, which was the pattern before 1972 when India had product patent protection? Will the positive features of the post-1972 process patent era be diluted or negated? This study finds that the MNCS have started marketing new patented drugs in India at exorbitant prices particularly for life-threatening diseases such as cancer. The manufacturing and importing behaviour of the MNCS since the 1990s bear a close resemblance to that before the 1970s. Imports of high-priced finished formulations are expanding rapidly with manufacturing investments lagging far behind. The MNCS are also expanding vigorously in the generic segments and are trying to grow not only organically but through mergers & acquisitions and strategic alliance with Indian generic companies.

Ranbaxy Sell-out: Reversal of Fortunes

The Ranbaxy sale to Daiichi Sankyo could herald a new phase in the evolution of the Indain pharmaceutical industry. In order to cope in a world after the agreement on Trade-related Aspects of Intellectual Property Rights came into force, some of the larger Indian firms pursued the two strategies of a greater internationalisation of sales of generic drugs and a focus on research and development as junior partners of global giants. Ranbaxy had mixed success with the two strategies. In recent years Ranbaxy found itself increasingly squeezed in both areas and was therefore left with little choice but to sell out. The issue once again then is to stretch the flexibilities in TRIPS and renegotiate the agreement - essential if the Indian industry is to remain healthy and prices kept under check.

Trade in Services: Policy Issues

Globalisation of Services: India’s Opportunities and Constraints by Rupa Chanda; Oxford University Press, Delhi, 2002; npp 276, Rs 595.

TRIPS Agreement and Amendment of Patents Act in India

This article examines whether the amendment to the Indian Patents Act, 1970 has taken advantage of the provisions available under the TRIPS agreement, and look at the exemption, exception and compulsory licensing provisions in pharmaceuticals.

Economic Reforms and Industrial Structure in India

This paper focuses on the impact of India's economic reforms on industrial structure and productivity. It reveals a disappointing overall performance in both output growth and employment. This, however, is not the result of exogenous factors,but the consequence of the type of policies being followed under economic reforms. If mistakes were made in the past, they need to be corrected. But efforts should be made to ensure that demand is high enough for more output to be produced, more people to be employed, poverty to be reduced.

Government and Transnationals-New Economic Policies since 1991

New Economic Policies since 1991 Sudip Chaudhuri This paper focuses on the direct investment activities of TNCs in the manufacturing sector in India in the context of the new economic policies. The official policies on foreign direct investment since 1991 are discussed and their implications are analysed, especially the response of TNCs and the impact on indigenous firms. The author attempts to probe whether TNCs are responding to the new economic policies by investing primarily for the export market or for the domestic market and examines the future prospects for export-oriented foreign investment.

Public Enterprises and Private Purposes

A basic premise underlying much of the critical writing on public enterprises is that there is something wrong with public enterprises per se. The author contests this view that public enterprises are inherently inefficient and contends that a crucial aspect has been the objectives and the priorities with which the public enterprises have been run. The focus of the paper is on the manufacturing enterprises under the central government FOR quite some time now the public enterprises (PEs) in India have been subject to attack. The critics refer to the low financial return of the PEs and their poor service, shortages and delays in delivering goods and services, etc. Of course others point out that the deficiencies of the PEs have often been exaggerated. Nagaraj (1993), for example, found that the financial performance of the PEs, in India improved in the 1980s and their resource generation effort is now comparable to that of the private corporate sector. Some PEs, for example, Bharat Heavy Electricals has significant achievements to their creduit [Lochan 1991; Ramamurti 1987]. But it is generally agreed that the performance of the PEs on the whole has been less than their potential and below the expectations with which they were set up.

Dunkel Draft on Drug Patents-Background and Implications

Dunkel Draft on Drug Patents Background and Implications Sudip Chaudhuri THE patent system in India is currently regulated by the Patents Act, 1970. It replaced the Patents and Designs Act, 1911 in 1972. In Section I of this paper, we will discuss how the transnational corporations (TNCs) enjoyed a monopoly status under the act of 1911 and thwarted indigenous efforts to develop the pharmaceutical industry. The provisions of the 1970 act, particularly those relating to drug patents, improved the condition of the indigenous sector, which gained at the cost of the TNCs. In Section II we will briefly mention some of the important changes introduced by the 1970 act. India however has been under pressure from some developed countries for quite some time now to amend the 1970 act. In the last section we will be concerned with the background of these pressures and the implications of some of the proposed changes, particularly in the context of Indian pharmaceutical industry's experience with the acts of 1911 and 1970.

Manufacturing Drags without TNCs-Status of Indigenous Sector in India

Status of Indigenous Sector in India Sudip Chaudhuri The literature on the pharmaceutical industry in developing countries deals primarily with the activities of the transnational corporations (TNCs). While the critics of the TNCs highlight the nature of the market power possessed by the TNCs, the sources of such market power, the exaggerated claims made by the TNCs about the therapeutic value of the drugs developed by them, the over-pricing by the TNCs of the materials imported into the developing countries, etc, the defenders of the present structure dominated by the TNCs try to counter these arguments. The question of manufacturing technology developed by indigenous firms in the developing countries has been neglected in the literature, although it has a bearing on the debate regarding the role of the TNCs in the developing countries.

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