Mumbai terror attacks hit pharma investment

The recent terrorist attacks in Mumbai, India, have dented local confidence in the prospects of inward investment for the pharmaceutical industry, according to a report in the Business Standard. One immediate effect was the cancellation of the CPhI India exhibition in the city, which had been due to open a couple of days after the events of November 26. This had been an opportunity for local contract drug companies to develop contacts with foreign clients. The same venue, the Bombay Exhibition Center, was also to host P-MEC, an important conference for Indian pharmaceutical manufacturing equipment firms.

The president of the Indian Merchants Chamber and managing director of the local unit of Swiss drug major Novartis, Ranjit Shahani, told the Standard: "such repeated terrorist attacks will mar out business interests, especially from Fortune 500 companies." He added that, "apart from the global meltdown, this will add more worries to our economic growth." A more hopeful assessment was presented by the Associated Press with Takahira Ogawa, the director of sovereign ratings at Standard and Poor's Singapore office, telling the news service: "this is a challenge for the government to maintain law and order in the country. At this stage, I don't think there will be any major impact on the macro-economic or fiscal position of the government."