Indian Pharmaceutical Industry After GST: Trends & Future

 

“Despite all these, The Effect of GST on Medicines in India will be positive in long run, and the Indian Pharma Industry will come up to the Govt expectations as viewed in Vision-2020”


Thus, for the time being, Pharma Distributors may lose their hard earned money due to GST. The Govt should find some good solution to compensate this segment of Pharma Industry.Despite all these, The Effect of GST on Medicines in India will be positive in long run, and the Indian Pharma Industry will come up to the Govt expectations as viewed in Vision-2020″

Pharmaceutical Industry in India: GST Impact

Pharma Industry has been playing a key role in Indian Economy. India is the third largest Pharma Business Destination in the world. In terms of volume, Indian Pharma Industry contributes about 20% to the Pharmaceutical production.

Indian Pharma Exports Before GST Regime:

According to the data released by the Pharmaceutical Export Promotion Council of India, Pharmaceutical Exports from India stood at $16.8 billion in the year 2016-17. The Nodal Agency expected the figure crossing $.20 billion in the next 3 years.

‘Pharma Vision 2020’

The Government is determined to boost Indian Pharmaceutical Industry and transform the country as a Generic Medicine Hub. The Government unveiled its new Pharma Vision 2020. Under the Vision-2020, it intentds to see & at make the country a global leader in end-to-end drug manufacturing.

The Govt is working to see that the Indian Pharma Industry grows by 9-10 % by 2020.

The Govt is setting up an electronic platform to regulate online pharmacies.

The government introduced mechanisms such as the Drug Price Control Order and the National Pharmaceutical Pricing Authority to deal with the issue of affordability and availability of medicines.

The Govt has cleared the policy of 100% FDI in Pharma Sector.

The Pharma Industry in India is expected to cross $.100 Billion Marck during the decade.

GST & Pharmaceuticals:

Earlier, most of the drugs, Pharma Salts & Other Pharma Raw Materials were taxed as a VAT @ around 5%. After the beginning of new GST Regime, Drugs & Medicines have been kept under the 12% GST Slab. Other products, like health food, although not covered under drugs, a prominent part of Pharma Industry, has been kept under 18% GST Slab.

GST & Essential Medicines & Life Saving Drugs:

Earlier, all the Life-Saving Drugs & Essential Medicines were exempted from VAT. After the GST Regime, Medicines falling under the List of Essential Medicines are also kept under the GST Slab of 12%. These have seen a net increase of 2.3% in the prices.

GST & Hardships of PCD Pharma Franchise/ Pharma Distributors:

After the GST, drugs & pharmaceutical prices have seen the increase in the prices. The large size PCD Pharma Franchise/ Distributors & C& F Pharma Agencies are holding huge stocks which they had purchased under earlier Tax rates of 5%. Despite their best efforts, they could not clear all such stocks before the deadline set up by the Govt. As a result, they have to suffer a loss of 7%.

Further, the pharmaceutical companies are likely to pass the complete burden to the end consumer. This means MRP on medicines could be increased by 5%. To check the prices, Government has taken steps in ensuring drug price-controlled medicines and also ceiling MRP. This can result in a loss of 2-3% by pharmaceutical manufacturers.

Besides this, some pharma dealers/ distributors are also finding it difficult to file the GST periodical returns.

Thus, for the time being, Pharma Distributors may lose their hard earned money due to GST. The Govt should find some good solution to compensate this one of the most important segments of Pharma Industry.

Despite all these, The Effect of GST on Medicines in India will be positive in long run, and the Indian Pharma Industry will come up to the Govt expectations as viewed in Vision-2020″


	

PCD Pharma Companies- Scope & Future

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“The business of distribution of goods or Agency / Dealerships has always been taken as a respectable business. And so, distribution of Medicines/ Pharmaceuticals has emerged as one of the most favored business during the years. This business has been favored by the younger generation in particular.”

PCD Pharma Companies

There is yet another type of Distribution Work; popularly known as Propaganda Distributors or PCD in short. Propaganda Distributors take up the responsibility of Brand Building of the product in their allotted area or the Region. However, PCD Companies get the necessary publicity materials from the manufacturers. They are responsible for creating fresh market for the product, making it popular and increase their share in that segment in their areas.

Scope of PCD Pharma Companies

PCD Pharma Companies have a very bright scope in the Indian market. The main factors behind the ill-health of the mass population, & in support of PCD Pharma Companies can be short-listed as under;

· Extensively large population and that too, increasing day by day

· Major chunk of Indian Population is below an average middle class or poor, & not getting proper nutritious diet

· A large number of Indian families are living in the slum areas, as such, are more prone to diseases. · Most of the families get impure & polluted drinking water discharged by the factories, even containing dangerous & health hazard chemicals. This results in the ill-health of the people.

· Most of the Indian farmers are lesser educated. They are not able to read or properly understand the instructions for using the pesticides, chemical fertilizers or chemicals used for ripening the fruit, storing the food grains etc. Normally they use these chemicals in excess than actually required or instructed by the Govt. Agencies.

Economic Factors That Favour The PCD Pharma Companies

Their are certain economic factors as well, that favour the PCD Pharma Companies. These can be short-listed as under;

· During the recent past, India has emerged as a hub of Pharmaceutical Manufacturing Companies. · There are not much restrictions by the State or Union Govt. for carrying the business of Pharma Wholesale Distribution or forming PCD Pharma Companies. · Besides catering to the requirements of the wide domestic market, Indian Pharma Products are exported across the globe. PCD Pharma Companies can play an active role in this area as well. · In the recent years, demand for India Herbal & Ayurvedic Medicines has increased to many folds. This has opened a new gateway for the PCD Pharma Companies.

“ PCD Pharma Companies is one of the leading Pharmaceutical Companies in Chandigarh. PCD Pharma Companies offer a wide range of over 300 world-class pharmaceuticals/ pharma products. The entire range of the products is manufactured only in GMP certified units. Our range of products includes Tablets, Capsules, Syrup, Dry Syrup, Injection, Cream, Protein powder and the range goes on and on. We have a well-developed infrastructure in Industrial Business Park of Chandigarh to meet our customers’ requirement.”