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Industrial Licensing

Import and Economic policies have undergone major changes like pruning of the Negative List for imports, doing away with the Actual User condition and full convertibility of Rupee on trade account. In this changed scenario, it is felt that there is no need to be more restrictive than before in granting industrial approvals, provided the two main concerns i.e., achieving basic stage manufacture and discouraging undue imports, are adequately taken care of. Under the circumstances, these objectives can be achieved only through the tariff mechanism and the EXIM Policy and as such Industrial Licensing and conditions stipulated therein have lost their relevance. It is also felt that, like in the other sectors of the economy, production would get the necessary impetus to meet any future demands as well as of ensuring adequate availability of drugs at reasonable prices if a more liberalised regime is operated in granting industrial approvals. Many of the drugs reserved for the Public Sector Undertakings have lost relevance vis-a-vis production programme of these units. Therefore, there is need to prune the list of items reserved for the Public Sector to only a few select items, where capacity in Public Sector is adequate to meet the country’s demand and heavy public investment has been made.