Fearing a loss in export revenues due to the appreciating rupee, pharmaceutical exporters have asked the government to extend relief measures to the sector similar to those being extended to nine select industries.
In a letter to Commerce and Industry Minister Kamal Nath, Pharmaceutical Export Promotion Council (Pharmexcil), has sought relief measures such as higher DEPB (Duty Entitlement Passbook Scheme) rates and 6 per cent concessional rate on post- and pre-shipment credits to all exporters.
“We are very happy that the minister has given relief package to nine industries but the pharmaceutical industry was inadvertently left out,” Pharmexcil said in its letter to the Commerce Minister.
The industry body fears that the competitiveness of the pharmaceutical sector would go down in the export market if the trend continues and reliefs were not extended.
“The pharmaceutical sector contributes nearly five per cent to India’s overall export and should be included in the select industries which have been given sops to counter the effect of rising rupee,” Pharmexcil Chairman D B Mody told PTI.
He said the sector would incur huge losses if sops were not extended to it.
“The rupee strengthened 63 paise and would have drastic effects on pharma exports. We want the government to announce uniform relief measures for all exporters,” Mody said.