Case Study: U.S.-based Mylan Pharmaceuticals
Aug. 16 – Right on the heels of Ford Motor’s announcement that their global auto sales manufacturing hub would be in India, U.S.-based pharmaceutical giant Mylan said that the company has additional plans to invest in India. With half its global work force of 20,000 persons located in the country, about one-seventh of its global income is from its India operations – but this is also expected to jump significantly. Continue reading
By Nathan Barlow
Jul. 4 – The Indian Supreme Court’s rejection of U.S.-based Novartis AG’s patent request for a new cancer drug has caused uproar in the American pharmaceutical community, with the ruling coming at a time when many other foreign pharmaceutical companies are experiencing patent challenges in India.
In sum, Indian patent laws do not consider new forms or alterations of existing substances to be “innovative” unless it improves efficiency. As such, the Indian Supreme Court ruled that Novartis’ reformulated version of the anti-cancer drug failed to warrant a patent because it was insufficiently innovative. Continue reading
Nov. 10 – The government of India has already allowed 100 percent FDI into the pharmaceuticals industry. Recently, the government has reviewed its policy in the particular sector. Below are the specific points:
- FDI, up to 100 percent, under the automatic route, would continue to be permitted for greenfield investments in the pharmaceuticals sector.
- FDI, up to 100 percent, would be permitted for brown field investments (i.e. investments in existing companies), in the pharmaceuticals sector, under the government approval route. Continue reading
Mar. 31 – Indian businesses have been busy recently signing new cooperations with foreign companies across the world. Here we provide a summary of some of the most important deals Indian companies have signed across several industries.
Ashok Leyland and Nissan unveil first LCV
India’s second largest heavy commercial vehicle manufacturer Ashok Leyland rolled out its first light commercial vehicle (LCV) Dost together with its partner, the Japan-headquartered automaker Nissan. As the current joint venture between the two companies covers cooperation in manufacturing, technology and power train for LCV production, in the future the two parties will likely expand their JV to include van design and development. Continue reading
Jan. 14 – The Indian government may issue new polices to only allow 49 percent foreign direct investment (FDI) into the country’s pharmaceutical market through the automatic avenue due to concerns that the increasing foreign market control may cause a price monopoly on drugs. Currently India allows 100 percent automatic FDI into the sector.
An official report circulated in August 2010 reveals a growing dominance of multinational corporations in India’s pharmaceutical sector. DG Shah, director general of the Indian Pharmaceutical Alliance (IPA) says MNCs have already expanded their market share to 25 percent from 15 percent five years ago. Continue reading
Aug. 4 – A recent Supreme Court decision has ruled that payment made in kind will also be subject to taxes in India.
This was based on an appeal made in court by local company Kanchanganga Sea Foods regarding its payment in kind to Hong Kong-based company Eastwide Shipping for lending the use of vessels and personnel. The Indian company gave Eastwide 85 percent of fish catch as payment. It was able to get its foreign partner official permission to fish in an Indian economic zone. Continue reading
Jun. 25 – India will exempt tax on services that deal with low-cost housing construction, power distribution, services within ports and airports, selected tournaments and championships, foreign travelers in transit and those flying to and from the northeast starting July 1.
“Repair of ships or boats or vessels belonging to the Government of India, including the Navy or the Coast Guard or the Customs, but does not include government owned public sector undertakings,” the Central Board of Excise and Customs (CBEC) said as to the services exempted from tax. Continue reading
Posted in Automotive, Chemical & Pharmaceutical, Chennai, Economy and Politics, Finance, Tax and Accounting, IT & Telecom, Legal and Regulatory, Location, Retail, Shipping & Logistics
Jun. 23 – India is considering lifting its foreign direct investment cap on the insurance sector from 26 percent to 49 percent according to Finance Minister Pranab Mukherjee.
“We have committed to allow 49 percent and the necessary legislation is pending before the House, as the leg process will be completed it will be done…in a year or so.” Pranab Mukherjee told NDTV during an Indo-U.S. CEO forum in Washington. Continue reading