Parliamentary Panel advises revision of MAI, PLI strategies to boost pharma exports

The Commerce Parliamentary Standing Committee proposed revisions to the Market Access Initiative (MAI) guidelines to support large enterprises and recommended adjusting the production-linked incentive (PLI) scheme to shield manufacturers from international price fluctuations. They advised protecting exporters' interests in Free Trade Agreements (FTAs). In their 187th report, presented on February 8 to the Rajya Sabha and Lok Sabha, the Committee noted concerns about changes to the MAI scheme, which limited benefits for companies with over Rs. 100 crore export turnovers, affecting large enterprises crucial to 70% of India's exports to regulated markets like the USA and EU.

The Committee urged the Department to reconsider MAI guidelines to include companies with over Rs. 100 crore export turnovers, essential for diversifying export destinations, especially in pharmaceuticals.

Stakeholders flagged issues with the PLI scheme, citing instances where competing countries reduced rates of active pharmaceutical ingredients, impacting Indian manufacturers. The Committee recognizes the pharmaceutical sector's significant role in foreign trade and recommends PLI scheme adjustments to safeguard manufacturers against global price fluctuations, after stakeholder consultations.

Additionally, stakeholders highlighted non-tariff barriers in markets like Malaysia and Indonesia, proposing mutual recognition agreements and FTAs to address these concerns and grant Indian manufacturers access to foreign government procurement markets. Despite providing generic medicines to over 200 countries, pharmaceutical exports are concentrated, with exports to NAFTA, Europe, and Africa accounting for 67% of total exports in 2022-23, with the USA alone representing 29.7% of global pharmaceutical exports from India.