New Foreign Trade Policy To Make Pharma Industry Sustain Its Leadership Status In Global Markets

India's new Foreign Trade Policy, recently introduced by Union Minister of Commerce and Industry Piyush Goyal, would help the pharmaceutical sector maintain its leadership position in global markets. According to the Union government, the new Foreign Trade Policy will help India meet its aim of $2 trillion in exports by 2030. It emphasises the need of promoting and regulating commerce. To ensure that exporters and importers have the certainty of stability and continuity throughout this rapidly changing geopolitical context, the new policy has omitted the sunset clause and end-period.

According to Dr. Sanjit Singh Lamba, managing partner of Trillyum Consulting, the new Foreign Trade Policy 2023 will help to strengthen the resilience of India's exports in the global trade environment and increase India's market share. The major focus of FTP 2023 is towards making this policy responsive to changing dynamics, working towards making Indian Rupee a global currency and allowing international trade settlements in the Indian rupee. It will help to make India a leader in specific sectors such as pharmaceuticals, engineering goods, and textiles.

Though in general no specific benefits are introduced for the pharmaceutical sector, it will create competitiveness and more ease of doing business and will remove uncertainties and create continuity and stability in India's trade. It may particularly increase trade in UAE and Australian region based on Free Trade Agreements done recently, Dr Lamba told sources. On a positive note, pharma expert Kaushik Desai stated that the policy has arrived at the perfect time. In light of the current global economic recession, it is poised for a seamless implementation in accomplishing its goals.

Even though the Indian pharmaceutical industry suffered a 2.62 percent reduction in February 2023, at $1.99 billion, compared to $2.04 billion reported during the same period the previous year, the industry remains optimistic. Sunil Attavar, former president of the Karnataka Drugs and Pharmaceutical Manufacturers Association, stated that the Foreign Trade Policy 2023 is well-crafted to meet the needs of future export growth.

The emphasis on process re-engineering and automation is particularly encouraging. It will help to increase compliance while also allowing businesses to focus on their main business and make access to export incentives easier. This will make them more competitive and enhance their export revenues. According to the Ministry of Commerce, the additions to the new Foreign Trade Policy are E-commerce, Internationalization of the India Rupee, District Exports Hub, and Merchanting Trade reform. As per the government’s Vivaad se Vishwaas initiative, to settle tax disputes amicably, it introduced a special one-time Amnesty Scheme under the FTP 2023 to help close old pending authorisations and start afresh. While this is effective from April 1, it will be available till September 30, 2023, to handle default on export obligations.