India focusses on Japanese pharma market

New Delhi: In order to harness the full potential of the Comprehensive Free Trade Agreement with Japan, India is likely to press the former for further opening of the pharmaceutical sector. This would help the domestic industry to leverage Comprehensive Economic Partnership Agreement (CEPA) and increase its share in the Japanese market.

The issue is expected to be discussed in the meeting to be held between Mr Anand Sharma, Commerce and Industry Minister and Yukio Edano, Japanese Minister of Economy, Trade and Industry on May 1, 2012.

The Comprehensive Economic Partnership Agreement (CEPA) between India and Japan, which came into effect from August 1, 2011, is projected to boost bilateral trade to US$ 25 billion by 2014. Indian pharmaceutical industry would gain significantly from the pact as Japan, the world's second largest market, had agreed to cut duties on imports of Indian generic drugs.

As per the pact, the Government of Japan would accord no less favourable treatment to the applications of Indian companies than it accords to the like applications of its own persons for drug registration. This would greatly help Indian pharmaceutical companies. It was highlighted by the official that the demand of generic medicines in the Japanese market and the capability of India to meet this demand will prove as a favourable situation for both the countries.

Both the nations are also expected to emphasise on starting negotiations on nursing and healthcare professional service as soon as possible.

"At present India's share is less than 1 per cent of total Japanese pharmaceutical market. India will urge the Japanese side to remove all non-tariff barriers so that real benefits envisaged under the comprehensive economic partnership agreement (CEPA) are materialised," according to a Ministry of Commerce official.

Besides, reviewing progress of the Delhi- Mumbai Industrial Corridor (DMIC), India's US$ 100 billion ambitious infrastructure project, Japan has further expressed its intention to invest US$ 4.5 billion (about Rs 23,400 crore) in the DMIC project.

The two-way trade between the countries has increased from US$ 13.82 billion in 2010-11 to US$ 18.31 billion in 2011-12. India's exports to Japan mainly include gems and jewellery, petroleum, transport equipment and machinery, while imports include chemicals and metals, electronic goods, iron and steel.