Lok Sabha Question No. 1327 (UNSTARRED), answered on 2016-05-02
Subject: Facilities to Drug Exporters
Ministry: COMMERCE AND INDUSTRY
Asked by: KUNWAR HARIBANSH SINGH, SUDHEER GUPTA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1327 TO BE ANSWERED ON 02 nd  MAY, 2016

## FACILITIES TO DRUG EXPORTERS

## 1327. KUNWAR HARIBANSH SINGH: SHRI SUDHEER GUPTA:

Will  the  Minister  of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the details of India's export of various pharmaceutical products including drugs during each of the last three years, quantity and value -wise and country -wise;
- (b) the details of the facilities being provided by the Government to the drug exporters;
- (c) whether the drug exporters are enjoying benefits both under Export Promotion Schemes and Excise Act;
- (d) if so, the details thereof and the reasons therefor; and
- (e) the steps proposed to be taken by the Government to check duplication of benefits for one consignment in a year under the said schemes and present revenue loss to the exchequer?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) : The details of country -wise export of various pharmaceutical products both in quantity and value during the last three years for the top 30 markets is annexed.
- (b) to (e) :Framework for increasing exports of various commodities including drug exports is provided in the Foreign Trade Policy (FTP) 2015 -2020. Financial assistance is provided under Market Development Assistance and Market Access Initiative Schemes of the Department of Commerce to exporters of various commodities including Pharmaceutical products, particularly small and medium size exporters. Export Incentives are available to Pharmaceutical industry through various trade promotion schemes like Merchandise Exports from India Scheme(MEIS), Advance Authorization Scheme, DFIA for import of raw materials and EPCG Scheme for import of Capital Goodsetc. in the Foreign Trade Policy (FTP).

Under Central Excise law, facility available to any commodity for payment of rebate of duty on export is also available to pharmaceutical products. Under Rule 18 of Central Excise

Rules, 2002, where any goods are exported, the rebate of duty paid on such goods or duty paid on material used in the manufacture or processing of such goods is granted. Alternatively, under Rule 19 of Central Excise Rules, 2002, any excisable goods may be exported without payment of duty from the factory of the producer or the manufacturer or the warehouse or any other premises. Benefits provided under the Export Promotion Schemes are independent of benefits available under Excise law, accordingly, duplication of benefits on same consignment do not arise. The benefits made available on excise duty for exports are primarily based on the trade principle that domestic taxes should not be exported.

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## India's Exports To Top 30 Countries QTY In Kgs And Value In $ Mn

| Rank                           | Country                        | 2012 - 13QTY KGs    | 2012 - 13$mn         | 2013 - 14QTYKGs     | 2013 - 14in$mn       | 2014 - 15QTYKGs     | 2014 - 15$mn         | 2015 - 16( April - Feb) QTY KGs   | 2015 - 16(April - Feb) $mn   |
|--------------------------------|--------------------------------|---------------------|----------------------|---------------------|----------------------|---------------------|----------------------|-----------------------------------|------------------------------|
| 1                              | US A                           | 97649580            | 3664.90              | 109724029           | 3958.33              | 113444064           | 4311.68              | 110814180                         | 5053.92                      |
| 2                              | SOUTHAFRICA                    | 11814411            | 455.07               | 13792030            | 561.56               | 17438904            | 511.71               | 21744673                          | 555.55                       |
| 3                              | UK                             | 21903920            | 519.04               | 30919459            | 527.96               | 28063629            | 543.07               | 26773896                          | 512.28                       |
| 4                              | NIGERIA                        | 47440274            | 342.06               | 47565111            | 382.42               | 56618140            | 420.40               | 57820309                          | 389.12                       |
| 5                              | RUSSIA                         | 13787895            | 574.09               | 13613464            | 546.60               | 12134815            | 425.65               | 11061530                          | 341.60                       |
| 6                              | GERMANY                        | 17592961            | 442.89               | 19329020            | 404.50               | 21376235            | 372.88               | 19558305                          | 312.54                       |
| 7                              | KENYA                          | 25379528            | 243.71               | 30764688            | 240.21               | 32836654            | 283.23               | 33118992                          | 299.91                       |
| 8                              | BRAZIL                         | 8630770             | 324.91               | 11122575            | 313.27               | 10628975            | 375.94               | 9256461                           | 299.11                       |
| 9                              | NETHERLAND                     | 9960960             | 226.40               | 8063744             | 234.00               | 10063914            | 243.24               | 7764367                           | 221.42                       |
| 10                             | FRANCE                         | 6356577             | 203.11               | 8332606             | 206.75               | 9944128             | 209.04               | 9391642                           | 209.76                       |
| 11                             | AUSTRALIA                      | 6112291             | 189.28               | 6360383             | 198.05               | 7859401             | 206.02               | 7229600                           | 208.10                       |
| 12                             | VIETNAMSOC REP                 | 15636306            | 200.94               | 17772985            | 212.39               | 22545974            | 233.60               | 23954335                          | 200.90                       |
| 13                             | SRI LANKA DSR                  | 12093839            | 155.90               | 13298110            | 166.73               | 13692479            | 172.85               | 14051187                          | 184.73                       |
| 14                             | CANADA                         | 4750673             | 274.41               | 4659025             | 227.49               | 4880403             | 208.14               | 3677174                           | 182.40                       |
| 15                             | PHILIPPINES                    | 4184244             | 125.81               | 5969578             | 140.16               | 8694781             | 156.08               | 8248505                           | 177.89                       |
| 16                             | BELGIUM                        | 4977788             | 136.09               | 7036912             | 126.94               | 8977064             | 153.84               | 9299459                           | 172.60                       |
| 17                             | IRAN                           | 5776788             | 161.37               | 9567901             | 182.97               | 10161919            | 174.73               | 10870082                          | 170.92                       |
| 18                             | TANZANIA REP                   | 9141534             | 134.06               | 12145444            | 155.31               | 13249603            | 187.64               | 9936446                           | 163.00                       |
| 19                             | UGANDA                         | 5276846             | 115.06               | 6732209             | 155.37               | 9644476             | 157.95               | 7589301                           | 152.37                       |
| 20                             | NEPAL                          | 11318765            | 125.87               | 12373603            | 141.83               | 21597735            | 169.14               | 15275962                          | 151.60                       |
| 21                             | EGYPTA RP                      | 12701525            | 87.80                | 10793792            | 93.08                | 14691565            | 116.58               | 13752066                          | 148.23                       |
| 22                             | MEXICO                         | 6976002             | 144.55               | 5547971             | 126.07               | 5255934             | 126.43               | 5676914                           | 146.65                       |
| 23                             | TURKEY                         | 4440508             | 186.25               | 7760165             | 156.54               | 8551604             | 147.69               | 6689864                           | 143.30                       |
| 24                             | MYANMAR                        | 6159461             | 123.11               | 8712152             | 138.73               | 10554895            | 171.78               | 8792020                           | 139.27                       |
| 25                             | THAILAND                       | 9973106             | 133.24               | 4840906             | 108.68               | 6380679             | 157.01               | 5957953                           | 135.81                       |
| 26                             | CHINA P RP                     | 6560308             | 121.71               | 9865092             | 118.54               | 9883395             | 139.12               | 8675902                           | 130.21                       |
| 27                             | JAPAN                          | 3662738             | 178.86               | 3998762             | 174.68               | 4772582             | 142.12               | 4033452                           | 128.66                       |
| 28                             | BANGLADESH PR                  | 9345098             | 130.92               | 11067194            | 156.77               | 10017826            | 140.75               | 9783366                           | 121.15                       |
| 29                             | SPAIN                          | 6003276             | 149.83               | 5899611             | 137.08               | 6171184             | 132.18               | 5790461                           | 120.78                       |
| 30                             | MOZAMBIQUE                     | 3605617             | 43.71                | 5918806             | 60.70                | 9428638             | 82.28                | 6980767                           | 118.10                       |
| Total of the above Grand Total | Total of the above Grand Total | 409213589 663698836 | 9914.933965 14420.80 | 463547327 736158204 | 10353.69977 14949.53 | 519561595 835088173 | 10872.77381 15431.50 | 493569171 745756269               | 11291.86864 15368.35         |

Annex