Export of drugs and pharmaceuticals from the country rose 25 per cent to Rs38,433 crore in 2008-09 from Rs30,760 crore in 2007-08. Exports in the 2008 financial year, in turn, increased 23 per cent from Rs24,942 crore in 2006-07.
India exports drugs and pharmaceuticals to both developed and developing countries. The manufacturers of drugs are required to comply with the GMP requirements and the drugs are tested by the manufacturer before the release of the same in the domestic market or for exports, minister of state for chemicals and fertilizers Srikant Kumar Jena informed the Lok Sabha in a written reply.
In reply to another question, Jena said the government has taken certain measures to boost exports of chemicals intermediates, dyes, pigments and pesticides from the country.
Some chemical companies had demanded concessions during the recession period. These included reduction in central excise duty from 14 per cent to 8 per cent, roll-back of import duty of 5 per cent on naphtha, levy of crisis duty of 10 per cent on all imported chemicals, intermediates, dyes, pigments and pesticides as also expeditious disposal of anti-dumping / safeguard measures, fiscal reliefs to SMEs and provision of low cost credit to them.
He said the government has responded by reducing excise duty from 14 per cent to 10 per cent and then from 10 per cent to 8 per cent.
The government also imposed anti-dumping / safeguards duties on soda ash (safeguard duty of 20 per cent), caustic soda (safeguard duty of 15 per cent) and carbon black (country-specific anti-dumping duty of $78-$195 per tonne).
He said the government restored DEPB rates to March 2008 level and extended 150 per cent weighted deductions of expenditure on R&D for recognised R&D units.
The period of export credit was also increased from 180 days to 270 days, the minister pointed out.
Source : domain-b.com