New Delhi, Jan 30 (KNN) Gujarat State Board of Indian Drug Manufacturers' Association (IDMA) has requested the Union Government to grant a special capital linked subsidy scheme in the upcoming Union Budget 2018-19 to support small and medium enterprises (MSMEs) as pharmaceutical industry has to go through with the changing international standards.

It has been more than a decade that pharma industry is growing 1.5 times the GDP growth rate and has annual turnover of 2.25 lakh crore(INR).

According to the industry body, special support and guidance is needed to ensure that MSME pharma units develop with changes in global norms for the industry.

The subsidy limit could be up to Rs 1.5 crore per MSME unit with which MSMEs could invest Rs 3-5 crore to upgrade to meet international standard

Gujarat has a large number pharmaceutical companies and units and accounts for a major share of India's pharma production.

The objective of creating capital linked subsidy scheme is to promote API ( Active Pharmaceutical ingredient) manufacturing in India in order to reduce India’s dependence on China for APIs. 

Under GST, manufacturers have to return ITC (input tax credit) accounted for materials used to make samples, that are given to doctors.

IDMA has suggested that the provisions related to reversal of ITC under GST for free goods should not include drug samples given to doctors.

The industry has also asked for quick refunds of IGST on exports from government.

Viranchi Shah, chairman of the Gujarat State Board of the Indian Drug Manufacturers' Association (IDMA), which mainly represents small Pharmacy companies in Gujarat said "The pharmaceutical industry in Gujarat has seen healthy growth after implementation of GST. If these recommendations are accepted, the growth will be even faster". (KNN/YV)