Released on = December 15, 2006, 9:22 pm

Press Release Author = RNCOS

Industry = Pharmaceuticals

Press Release Summary = Federation of Indian Chambers of Commerce and Industry,
proposing its pre budget list of wishes, has recommended the government to extend
150% weighted deduction on investments pharmaceutical companies make for R&D
activities.

Press Release Body = FICCI (Federation of Indian Chambers of Commerce and Industry),
in its pre budget demand list, has urged that the government should extend 150%
weighted deduction on investments made by pharmaceutical companies in building and
land for the purposes of R&D (Research and Development).

The federation has also solicited waiver of excise and custom duties and service tax
for revenue expenditure, capital goods, and services received by research and
development units. In its pre budget memo to govt., FICCI has recommended that
chosen life saving drugs ought to be given full exemption from custom duty. Today,
these drugs attract custom duty ranging between 5%-12.5%.

The federation has also asked for reduction in excise duty on pharmaceuticals from
16% to 8%. It has also sought a review of duty structure and naptha rate. As per
FICCI, the levy on naptha for chemical industry needs to be brought at same level as
naptha for plastics, which is at zero percent. Naptha, which is a raw material for
most chemicals, bulk drugs and fine chemicals, attracts ten percent of import
duties. On the other hand, either zero percent or confessional rate of duty is
attracted by life-saving drugs.

FICCI has also suggested that diminution on MRP in pharmaceutical industry ought to
be raised to 45% from its current level of 40%.

As per the views expressed by a senior Research Analyst at RNCOS, who has recently
researched a report on “World Pharmaceutical Market (2007)”, the market
for pharmaceutical products is expanding rapidly. Naptha is allowed at zero percent
duty by China, which is an archrival of Indian pharmaceutical industry. This makes
an adverse affect on the global competitiveness of Indian pharmaceutical companies.

“World Pharmaceutical Market (2007)\" report also addresses the issues and
facts that are critical to the success of pharmaceutical industry worldwide, such
as:

- Emerging trends in the global pharmaceutical industry.
- Who are the key players in this sector?
- Get an insight into the trends in market performance.
- Pinpoint sectors of growth and identify the driving factors.
- Identify market, brand leaders and understand the competitive environment.
- What are the key challenges and strategies associated with global pharmaceutical
industry?

About the report

The report provides an exclusive overview of global pharmaceutical industry. It
provides authentic past and current performance data for the pharmaceutical
industry. The report is a must read for investors, businesses, researchers, and
individuals willing to acquire an in-depth knowledge of the world pharmaceutical
industry.

About RNCOS:

RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.

For more information visit: http://www.rncos.com/Report/IM085.htm

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