Indian Industry Welcomes New Drug Policy

CII, the Confederation of Indian Industry - an apex body of the corporate sector - has broadly welcomed the amendments to the new drugs policy (Marketletters passim), and has said there is a substantial "unfinished agenda" to really unshackle the pharmaceutical industry from controls.

Subodh Bhargava, president of the CII, has said that "there is no reason why licensing should continue for biotechnology, recombinant technology and genetic engineering, each of which are sunrise sectors." It was necessary to delicense these, he added.

Mr Bhargava called most of the amendments "a step in the right direction," and said this was a good beginning, and that industry hopes this process of deregulating the pharmaceutical sector would continue. He said the government's efforts to encourage R&D are also welcome, but added that "the proposed 1% CESS (to build up a corpus fund) is likely to lead to an additional burden on industry, at a time when its average profitability - in respect of the price-controlled drugs - is only in the range of 3% to 5%."