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Shifting Indian API cos to Uzbekistan is not govt business, depends on individual interests: Experts

A Raju, Hyderabad
Tuesday, June 12, 2018, 08:00 Hrs  [IST]

Expressing their opinion over the recent news report that the government is proposing to shift some of the Indian API manufacturing units to Uzbekistan to utilise the tax incentives offered by their government and at the same time take the opportunity to increase India’s API manufacturing capacity, some of the members from Bulk Drugs Manufacturing Association (BDMA) observed that any such proposal to shift the private API industries to other countries by the Indian government would not augur good for the country.  

They observed that, instead the government should come forward and release its own guidelines to encourage the domestic industry to increase their capacities within the country instead of asking the industry to look out for better opportunities. “It is none of the business of the government department to tell the private industries to look out for opportunities outside the country. We know where to go and where not to go. It depends on our own individual interests. In my view such proposals by government will backfire the country’s own interests in the long run. As already we are importing large quantities of APIs from China, if our own companies go out and utilise the incentives of other countries, in the long run instead of China we will have to depend on Uzbekistan for API imports. Then, what is the difference and why the government has come out with such proposals, what interests will it serve the government”, questioned Narayan Reddy, managing director of Vircho Pharma and Ex-BDMA president.

Reddy vehemently opposed such kind of proposals by the government and instead asked the policy makers to draft some long term plans that would help the industry expand its roots within the country rather than asking the industry players to venture into outside pastures. “In my opinion all such reports are false and even if some government department is mulling to come out with such proposals it will backfire and will be a great economic loss to the country in the long run,” Reddy opined.

Giving his comments on the issue of government proposing to send some of the API manufacturers to avail the opportunities offered by Uzbekistan government for the Indian API manufacturers, Director General of Pharmexcil Uday Bhaskar said, “Uzbekistan government to encourage its industrial development in the pharma sector invited interested Indian API manufacturers to invest in the country and avail the tax incentives and other initiatives like subsidised land, power and water facilities which is aimed at attracting the investors. This does not mean the Indian government is trying to shift the Indian API units to other countries. We have to look at it with a positive angle. Because such opportunities will help our potential API manufacturers to increase their capacities in Uzbekistan and may be beneficial to increase India’s API manufacturing capacity.”


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