Industrial Licensing
6. Import and Economic policies have undergone major
changes like pruning of the Negative List for imports, doing away with the
Actual User condition and full convertibility of Rupee on trade account.
In this changed scenario, it is felt that there is no need to be more
restrictive than before in granting industrial approvals, provided the two
main concerns i.e., achieving basic stage manufacture and discouraging
undue imports, are adequately taken care of. Under the circumstances,
these objectives can be achieved only through the tariff mechanism and the
EXIM policy and as such Industrial Licensing and conditions stipulated
therein have lost their relevance. It is also felt that, like in the other
sectors of the economy, production would get the necessary impetus to meet
any future demands as well as of ensuring adequate availability of drugs
at reasonable prices if a more liberalised regime is operated in granting
industrials approvals. Many of the drugs reserved for the Public Sector
Undertakings have lost relevance vis-à-vis production programme of these
units. Therefore, there is need to prune the list of items reserved for
the Public Sector to only a few select items, where capacity in Public
Sector is adequate to meet the country's demand and heavy public
investment has been made.
Research and Development
7. The Drug Industry is a highly R&D oriented sector
in which there is a very high rate of obsolescence. This sector has also
been identified as one of the thrust areas for exports. There is,
therefore, need to ensure that the technologies used in the country are
cost effective and efficient. It is necessary to attract greater
investment into this sector in order to update the existing technologies
and for bringing into the country technologies which are not currently
available. At the same time it has to be noted that the Indian companies
have achieved considerable stature in terms of production as well as in
marketing ability and indigenous technology has also reached a commendable
level in many cases. However, in view of GATT accord and impending changes
in Patent Laws, the subject matter of Basic Research in drug sector has
assumed greater importance and needs to be attended to on an urgent
basis.