Karnataka pharmaceutical

October 2010

Karnataka pharmaceutical wants state government to set up exclusive pharmaceutical park to encourage growth The Karnataka pharmaceutical industry wants the state government to set up an exclusive pharmaceutical park to help it achieve higher level of growth. Pharmaceutical industries, which require huge investments in setting up of comprehensive infrastructure, in Karnataka have been, over the years, struggling to control pollution and manage effluent treatment issues, etc. due to lack of proper infrastructure.

PSA view: The industry has vast opportunities which are still to be tapped. In 2009-10, the pharmaceutical industry in Karnataka generated exports worth INR. 3,500 (US$ 772,534,537 approx.). The growth in the pharmaceutical industry in Karnataka has often been compared to that of Information Technology (“IT”) and biotechnology. To unleash the full potential of the pharmaceutical industry in Karnataka, the government needs to provide infrastructure, as it has done for the IT sector.

* Health ministry to issue direction to states on Spurious Drugs Act Guidelines

The Union Health Ministry (“Ministry”) will soon be issuing directions to the state drug authorities under section 33P of the Drugs and Cosmetics Act (1940) (“DCA”) over notification of guidelines attached to the Spurious Drugs Act. Once the directions are issued by the ministry, the State Government will have to follow the directive before executing the various provisions of the Spurious Drugs Act. These guidelines had earlier been circulated by the ministry, but as were not mandatory, had not been implemented by the states. But, as these directions are now being issued under section 33P of DCA (which authorizes the Central Government to issue directions to State Government), the state drugs authorities will have to comply with the guidelines before executing the various provisions of the Spurious Drugs Act.

PSA view: The guidelines were passed with the aim of allaying fears of harassment of the genuine drug makers by drug authorities, though sadly had not been implemented. These guidelines, when passed, will surely be a blessing to the many drug makers all over India.

* Government looking at new options to boost pharmaceutical sector

The Government is looking at policy options to strengthen India’s pharmaceutical industry and also check the growing instances of takeovers by foreign players. The Commerce Department’s Pharmaceutical Export Promotion Council has commissioned a study to suggest ways to enhance competitiveness of the domestic industry. The report is expected to be finalized and tabled for discussion by end of November by the Commerce Department. The report will suggest ways by which the local pharmaceutical sector can be made more productive and competitive. It will examine methods of reducing cost, financing of patents, warehousing and development of clusters, etc.

PSA view: This move will surely be welcomed by the local players and the small and medium sized enterprises, as it will give confidence to these industries to take on foreign competition.

Neeraj Dubey
Ashutosh Chandola
Divij Kumar