World of Industries

PHARMACEUTICAL INDUSTRY OF INDIA

close on the heels of the visit of Japan Prime Minister, Yukio Hatoyama to New Delhi and his talk
with the Indian Prime Minister Manmohan Singh, high level officials from India and Japan are likeky
to meet in the second week of January to take forward negotiation on inking a Comprehensive Economic
Partnerhip Agreement(CEPA).

Officials in th commerce Ministry said here on Wednesday that negotiators would work on narrowing
gaps in services and Pharmaceuticals- areas of interest to India. However, Japan has several
apprehensions about opening these sectors. the Indian Pharmaceuticals industry, which gets 45 per
cent of its $20-billion revenue from exportS, is seeking market access in Japan that has a tough
control regim for drug imports. Japan is also apprehensive about giving access to Indian professional
in services, which contribute about 55 per cent to the Indian economy.

The talks for opening up of markets werw launched in 2007 and officials on both sides have completed
12 rounds of talks.

Dr.Singh and Mr.Hatoyama had instructed their officials on tuesday to sort out the issues in the
way of the CEPA. According to Indian officails figures, the two-way trade for 2008-09 stood at
$10.6 billion, with imports accounting for $7.6 billions.

Comparatively, India-China trade stands at over $40.6 bollion. Indians has signed market opening
pacts with ten member ASEAN bloc and Korea which will become operational from January 1.

Similarly, India will take up the widening trade deficit to over $20 billion with China when the
Commerce Minister, Anand Sharma, visits Beijing on January 19. Mr.Sharma and his Chinese counter
part Chen Dimng willl attend the meeting of the Joint Ecinomic Group (JEG) where the issue of the
large tradfe gap would be discussed. the Commerce Minister had already expressed its concern over
the increasisg trade gap between India and China. India's imports from China are over three times
its exports to that country, according to the 2008-09 data.

In the JEG meeting, which is being convened after three years, India would also seek access for its
fruits and vegetables in the Chinese market, the Officials said.

China, on its part is likely to seek market economy status from Indian and may reiterate its concerns
on India resorting to large number of anti-dumping cases against the neighbouring country.