20.73% GROWTH IN EXPORTS IN THE DRUGS, PHARMACEUTICALS AND FINE CHEMICALS SECTOR

ANNUAL REPORT OF THE DEPARTMENT OF CHEMICALS AND PETROCHEMICALS TABLED

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According to the Annual Report of the Department of Chemicals & Petrochemicals in the Ministry of Chemicals & Fertilizers, the pharmaceutical industry in India today is one of the largest and most advanced among the developing countries. Indian Pharmaceutical Industry manufactures bulk drugs belonging to several major therapeutic groups requiring various manufacturing processes and has developed excellent facilities for production of all dosage forms like tablets, capsules, liquids, orals and injectables etc. This achievement is strengthened by an assurance with regards to quality of the products. The pharmaceutical industry today produces the complete range of formulations i.e. medicines ready for consumption by patients and about 350 bulk drugs i.e. chemicals having therapeutic value and used for production of formulations. Today India is in a position to meet 70% of the country’s requirement of bulk drugs and almost the entire demand for formulations. This has been made possible by the policy inputs over the last several years which have been directed towards promoting the growth of the industry and in helping it to achieve a broad base in terms of the range of the products and technologies needed to produce them from as basic stage as possible.

As far as production is concerned, the Annual Report states that during the period ending November 2001, 66 Industrial Entrepreneurial Memorandums (IEM) were filed by the pharmaceutical companies for various bulk drugs, formulations and intermediates. These IEMs are estimated to generate employment for approximately 9000 people and there would be an investment of approximately Rs. 922 crore on these projects. During the same period, Foreign Direct Investment proposals worth approximately Rs. 307 crore were approved by Foreign Investment Promotion Board (FIPB).

Export of Drugs, Pharmaceuticals and fine chemicals during the last three years has been as follows: -

(in Rs. Crore)

1998-99	1999-2000	2000-2001 (Provisional)
6256.06	7230.16	8729.89

The exports have clocked a growth rate of 15.54% in 1998-99, 15.57% in 1999-2000 and 20.73% in 2000-2001 (provisional).

In the Department of Chemicals and Petrochemicals, a Budgetary provision of Rs. 21 lakh exists for the year 2001-2002 to fund R&D projects and R&D related studies in the pharmaceutical sector.