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FPME to make representation to IBA to address issues related to arbitrary banking costs impacting merchant exports
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Shardul Nautiyal, Mumbai
May 18 , 2023
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In order to incentivize the domestic industry and ensure ease of doing business, the Federation of Pharmaceutical and Allied Products Merchant Exporters (FPME) is planning to make a representation to the Indian Banks' Association (IBA). As of today, FPME faces a multitude of challenging issues of banks levying arbitrary charges despite the impending scenario of lower profit margins along with costlier services and manpower bills.
These were some of the deliberations made on the occasion of the FPME annual event held recently at the Indian Merchants Chamber (IMC) in Mumbai.
IBA is a representative body of management of banking in India in association with Indian banks and financial institutions based in Mumbai.
While Covid is again showing its face, the effect is much milder. But apart from the recent surge in Covid numbers, one has, by now, experienced the adverse financial and economic effects of the Covid.
On the occasion, Sandeep Modi, joint secretary, FPME said, “There is a need to define policies of banks with reference to the huge arbitrary charges levied by them plus GST charges which should be common and uniform with reference to documentation and processes. Other issues which the industry faces include higher interest rates on borrowings and remittances from certain countries becoming difficult. In order to bring down the dependency of dollar by other countries, more countries need to be onboard for rupee transactions to benefit merchant exporters."
India registered exports worth 25.39 billion USD this year with a growth rate of 3.25%. It was less than 1% last year vis-à-vis more than 3% this year.
According to industry experts, “This year the growth of more than 3%, though small, is really inspiring as compared to last year less than single digit growth which also included the opportunistic vaccine exports of worth USD 8 billion with total exports amounting to around USD 24.62 billion last year.”
Namit Joshi, director of Centrient Pharmaceuticals and vice chairman of Pharmaceuticals Export Promotion Council of India (Pharmexcil) on the sidelines of the event said that FPME industry has evolved from being a distributor to owning brands and supporting contract manufacturing in India to launching new products outside which talks about our success journey. Today, we are able to bridge the gap between supplier and consumers as generic producers but we also need to grow further from USD 25.39 billion exports currently. There is also a need to make efforts towards constant innovation and embracing technologies like 3D printing, artificial intelligence (AI) and machine learning (ML) to enter niche segments like oncology.
On the occasion, Sumanta Choudhury, Advisor Pharmexcil informed, “The merchant exporters should seek the guidance of the right specialist or partner to enter the right market and choose the right products without any uncertainty and fear in mind. One has to be sensible and rational in terms of selection of products, partner and market.”
Dr Radhakrishnan Pillai, author of the bestseller Corporate Chanakya said, “All the constituent elements of the state like the king (President), the minister, the country (population), the fortified city (infrastructure), the treasury, the army and the ally (Industry) need to make unified efforts in making the businesses profitable and viable citing Kautilya Arthshastra or Economics.”
The chief guest of the annual FPME event was Dr. Bhagwat Kishanrao Karad, Union minister of state and finance, Government of India, and Member of Parliament (MP), Rajya Sabha, Maharashtra and Dr P V Appaji, founder and former director general of Pharmexcil attended it virtually.
The FPME is an industry association based in India that represents the interests of pharmaceutical and allied product exporters. Established on March 30, 2019 under the Companies Act, FPME aims to promote and support the export of quality pharma products from India to international markets. The organization serves as a platform for industry professionals to network, collaborate, and share knowledge and expertise.
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