Bank of India provides long-term financing plan for pharmaceutical industry

Source: India pharmaceutical information 2013-8-5 Exim Bank plans to provide long-term financing to Indian pharmaceutical enterprises to cope with the impact of long construction cycle to meet the high standard requirements of FDA or other regulatory markets, so as to meet the development needs of Indian pharmaceutical industry The specific contents of the long-term financing plan include the maximum repayment period of 10 years and the extension of payment right of 36 months at most, the financing funds covering all expenses for obtaining FDA certification and approval and related facilities construction, etc In spite of its great potential in increasing the share of global exports, Indian pharmaceutical companies are still under great pressure to cope with strict regulations and standards in European and American countries According to a survey by the Export Import Bank of India, the market size of Indian pharmaceutical industry during 2011-2012 is about 29 billion US dollars, which is only 1.2% of the global pharmaceutical market in terms of comparable value In order to increase the global market share, Indian pharmaceutical industry needs to strengthen the development of international standard high-end market, and encourage more Indian pharmaceutical enterprises to meet the certification requirements of European and American countries The cost of compliance for pharmaceutical companies to meet the requirements of FDA regulations is quite high For example, it will cost 300-400 million rupees for a API manufacturing plant to pass FDA certification and 500-600 million rupees for a preparation manufacturing plant Moreover, the average period of building such a factory is about 18-24 months The Export Import Bank of India attaches great importance to promoting the development of pharmaceutical industry in India The bank has been helping pharmaceutical enterprises from the perspective of the whole industrial chain, including project support from the production of basic raw materials to APIs and preparations and research and development During 2012-2013, the proportion of R & D investment of Indian pharmaceutical enterprises reached about 5% of sales revenue Although it is very low compared with developed countries such as the United States and Germany, it is still high compared with the average level of domestic industrial R & D investment Therefore, it is imperative for India's pharmaceutical industry to increase its R & D investment and strengthen its competitive position in the global market In order to help pharmaceutical enterprises strengthen their R & D capabilities, according to the bank's "R & D loan plan", the bank also expanded the support of extension financing scheme for export-oriented qualification companies in terms of capital and income expenditure The maximum amount of financing can reach 80% of the capital expenditure of the compliance project, and the standard term of the loan is 7 years At the same time, financing is also allowed for special projects with long-term loans with suitable assessment income The Export Import Bank of India will continue to work closely with the Ministry of industry and Commerce of the federal government to meet the development needs of the pharmaceutical industry in India.