June 12, 2018
Bilateral trade between the countries was recorded at nearly US$90 billion, reporting a jump of 25 per cent from the previous
While China has continued as India’s largest foreign trade partner, the transactions so far have been import-heavy for India
The countries have taken measures to strike better balance in transactions, including the training for Indian pharma firms
India's pharma exports rose by 3 per cent to US$7.3 billion in financial year 2017-18, with just 2.5 per cent going to China
China will conduct specific training for Indian pharmaceutical companies that are aiming to riase export to markets in the country, according to a report by the Press Trust of India on June 12, citing a senior government official. This will help Indian firms in understanding the China’s regulatory environment as well as local market demand. The initiative is expected to boost India’s export to China. Bilateral trade between the countries was recorded at nearly US$90 billion, reporting a jump of 25 per cent from the previous. While China has continued as India’s largest foreign trade partner, the transactions so far have been import-heavy for India. However, the countries have taken measures to strike better balance in transactions, the training programme for Indian pharma firms comes as part of that initiative.
The move is expected to significantly reduce the time taken by Indian pharmaceutical companies to attain regulatory clearance to market products in China. The PTI report quoted the official as saying that the Chinese Government had assured to provide a platform for Indian exports of pharmaceutical products along with specific training to Indian companies to understand the Chinese regulatory system and processes. China, the world’s second largest pharmaceutical market after the USA, offers incredible income growth opportunities for India, which is the world’s largest producer of generic medicine. Indian drugmakers also source around 60 per cent of their pharmaceutical ingredients from China. During 2016-17, India had imported active pharmaceutical ingredients (API) from China worth US$1.8 billion.
The Chinese initiative comes as bilateral relations between the countries reached new heights with Prime Minister Narendra Modi making two trips to China to attend an informal bilateral summit in April 2018 and the annual meet of the Shanghai Cooperation Organization (SCO) in June. The high-octane visits led to the nations signing crucial bilateral agreements, which included the expansion of Indian rice export to China beyond the premium Basmati variety as well as China agreeing to share hydrological information on the Brahmaputra river with India. Chinese President Xi Jinping had also suggested that India and China should target annual bilateral trade of US$100 billion by 2020. Meanwhile, India’s pharma exports rose by 3 per cent to US$7.3 billion in 2017-18, with just 2.5 per cent going to China.