For technology up-gradation to Micro and Small Enterprises in the pharma sector, Ministry of Micro, Small & Medium Enterprises (MSME) is running Credit Linked Capital Subsidy Scheme (CLCSS) under which Micro and Small Enterprises are entitled to take loan upto ₹ 1.00 crore with 15% subsidy.

Drugs for sale or for export are manufactured under license granted by State Licensing Authorities appointed by State governments. Central Drugs Standard Control Organization (CDSCO) has not received any such information that majority of small pharmaceutical manufacturers are doing job work/contract work for bigger pharmaceutical units which export the same under their brand name.

Some of the measures taken by the Government to promote exports by small and medium Pharmaceutical manufacturers are :

i) Financial assistance through Pharmexcil, an Export Promotion Council, is provided under Market Development Assistance and Market Access Initiative Schemes to exporters of Pharmaceutical products particularly small and medium size exporters to promote their exports in various countries.

ii) Trade Delegations/Buyer Seller Meets (BSMs) to various countries are organized, where One-to-One meetings with local buyers/importers , FDA/Regulatory officials are arranged for the benefit of exporters.

iii) Participate in International exhibitions and assist small and medium scale companies by way of providing space in those exhibitions at reasonable costs.

iv) Business Meets are organized in India by inviting buyers/importers/FDA officials to India and one-to-one meetings are arranged. These meets help the industry, particularly small and medium exporters.

v) Pharmexcil organizes its own Expo in India viz. IPHEX every year, which is helping the small and medium exporters.

vi) Pharmexcil has separate Cells/desks for IPR and AYUSH sector to help the small and medium exporters.

vii) Incentives to Pharmaceutical industry are available in various trade promotion schemes like Focus Market Scheme, Focus Product Scheme, and Advance Authorization Scheme etc. in the Foreign Trade Policy (FTP) which also helps the Small and Medium exporters for promoting their exports.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.

Credit Linked Capital Subsidy Scheme supports small pharma exporters through subsidised loans and targeted export promotion measures. The government supports small and medium pharmaceutical exporters through the Credit Linked Capital Subsidy Scheme for technology upgradation, while manufacturing for sale or export remains licensed by State Licensing Authorities and CDSCO reports no indication that most small manufacturers act mainly as contract producers; export-promotion measures include export council financial assistance, trade delegations and buyer-seller meets, exhibition participation, inbound business meets, an annual pharma expo, specialised IPR and AYUSH desks, and Foreign Trade Policy incentives such as focus market/product schemes and advance authorisations.