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Batch 2022-25

EXPORT IMPORT MANAGEMENT PROJECT REPORT

Healthcare Sector – RANBAXY Laboratories

Submitted to – Submitted By –

Dr Richa Goel Prasidh Dhingra 2202102297

Rahil Jain 22021021317

Rishit Roy 22021021329

Viraj Pratap Singh 22021021473

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INTRODUCTION

Export-import management theories encompass a range of concepts and frameworks that

guide businesses in their international trade endeavours. These theories provide insights into
the dynamics of global markets, the strategies for market entry, the management of
international transactions, and the optimization of trade operations. By understanding and
applying export-import management theories, organizations can enhance their
competitiveness, mitigate risks, and capitalize on opportunities in the global marketplace.

OBJECTIVES OF EXPORT-IMPORT MANAGEMENT THEORIES:

1. Understanding Global Market Dynamics: Export-import management theories aim to

provide a comprehensive understanding of the complexities of global markets, including
factors influencing demand and supply, trade regulations, cultural differences, and
geopolitical considerations.

2. Developing Effective Market Entry Strategies: These theories help businesses identify
and evaluate various market entry modes, such as exporting, licensing, joint ventures, and
foreign direct investment, to determine the most suitable approach for international
expansion.

3. Optimizing Trade Operations: Export-import management theories offer insights into

trade finance, logistics, supply chain management, and risk mitigation strategies, enabling
organizations to streamline their trade operations, reduce costs, and enhance efficiency.

4. Managing International Transactions: These theories provide guidance on managing

international transactions, including pricing strategies, negotiation techniques, contract
management, and compliance with trade regulations and documentation requirements.

5. Enhancing Competitiveness: By applying export-import management theories,

businesses can enhance their competitiveness in the global marketplace by identifying unique
selling propositions, leveraging comparative advantages, and developing sustainable
competitive strategies.

SCOPE OF EXPORT-IMPORT MANAGEMENT THEORIES:

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1. Market Analysis and Entry Strategies: This includes theories related to market research,
segmentation, targeting, and positioning, as well as theories guiding the selection of
appropriate market entry modes and strategies.

2. Trade Finance and Payment Mechanisms: This encompasses theories related to trade
finance instruments, such as letters of credit, documentary collections, and export credit
insurance, as well as theories guiding the management of foreign exchange risk and
international payment mechanisms.

3. Logistics and Supply Chain Management: This involves theories related to

transportation, warehousing, inventory management, and distribution networks, as well as
theories guiding the optimization of supply chain operations across international borders.

4. International Marketing and Sales: This includes theories related to international

marketing strategies, branding, pricing, promotion, and distribution channels, as well as
theories guiding the adaptation of marketing tactics to diverse cultural and regulatory
environments.

5. Legal and Regulatory Compliance: This encompasses theories related to international

trade law, trade agreements, customs regulations, export controls, and intellectual property
rights, as well as theories guiding organizations in ensuring compliance with relevant legal
and regulatory requirements.
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RANBAXY'S STRATEGIES FOR GOING GLOBAL

1. Uppsala Model of Internationalization: This model suggests that companies gradually

increase their international involvement through incremental stages of commitment.
Ranbaxy's approach of initially focusing on neighbouring markets like Southeast Asia before
expanding to more distant markets in Europe and North America reflects this theory. By
gradually building its international presence, Ranbaxy minimized risks and gained valuable
experience in diverse markets.

2. Porter's Diamond Model: According to this theory, a nation's competitiveness in a

particular industry is influenced by factors such as factor conditions, demand conditions,
related and supporting industries, and firm strategy, structure, and rivalry. Ranbaxy leveraged
India's skilled workforce, lower production costs, and growing domestic demand for
pharmaceuticals as factors driving its competitiveness in the global market. Additionally, the
company's emphasis on research and development, partnerships with local suppliers, and
strategic alliances contributed to its competitive advantage.

3. International Product Life Cycle (IPLC): This theory suggests that products go through
distinct stages—introduction, growth, maturity, and decline—each with implications for
international trade. Ranbaxy's focus on generic drugs aligns with the maturity stage of the
product life cycle, where products become standardized, and competition intensifies. By
targeting markets with established demand for generic pharmaceuticals, Ranbaxy capitalized
on this stage to expand globally.

4. Market Entry Modes: Ranbaxy employed various market entry modes, including
acquisitions, joint ventures, and strategic alliances, which align with theories of market entry
strategies. These approaches allowed Ranbaxy to access new markets quickly, leverage local
expertise, and share risks and resources with partners. For example, the acquisition of Terapia
in Romania provided Ranbaxy with immediate access to the European market and local
manufacturing capabilities.
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5. Transaction Cost Theory: This theory suggests that firms seek to minimize transaction
costs associated with market exchange by choosing the most efficient governance structure,
such as hierarchical control or market-based coordination. Ranbaxy's strategic alliances and
acquisitions allowed the company to reduce transaction costs by accessing existing
distribution networks, regulatory approvals, and market knowledge, rather than building them
from scratch.

[Improved revenue growth due to meticulous strategy implementation]

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ANALYSIS OF HEALTHCARE SECTOR

SWOT ANALYSIS

1) Strengths

I. Cost Advantage: Healthcare services in India are relatively cheaper compared to

many other countries, attracting medical tourists for treatments ranging from cardiac
surgeries to cosmetic procedures. Indian hospital treatment is cheaper compared to
developed countries due to certain factors that lower the cost in India, and increase the
cost in developed countries, especially US. In India, cost of living is less, so salaries
to doctors will be less. The rent paid by the hospital for real estate will be less. Since,
huge number of patients are coming, cost can be reduced per patient, to earn from
economies of scale. And there will be government subsidies for some critical
medicines like those for cancer, HIV etc.

Whereas in US, cost of living is high, so doctors have to be paid more. Number of patients
are less, so per patient cost will be increased by the hospital. US does not believe in subsidies
at all.

II. Traditional Medicine Practices: India has a rich tradition of alternative medicine
systems like Ayurveda, Yoga, Naturopathy, and Homeopathy which are increasingly
gaining recognition globally. Traditional medical systems often emphasize a holistic
approach to health, considering not only physical symptoms but also mental,
emotional, and spiritual well-being. This approach resonates with many individuals
who seek alternatives to conventional medicine. Traditional medicine practices often
utilize natural remedies, dietary modifications, and lifestyle changes, which can be
more cost-effective compared to modern medical interventions involving expensive
drugs or procedures. This affordability makes traditional medicine accessible to a
broader segment of the population, particularly those with limited financial means.

III. Pharmaceutical Industry: India is a significant player in the global pharmaceutical

market, providing affordable generic drugs to both domestic and international
markets. India is the largest supplier of generic medicines. It manufactures about
60,000 different generic brands across 60 therapeutic categories and accounts for 20%
of the global supply of generics.
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IV. Technology Adoption: The Indian healthcare sector is rapidly adopting technological
advancements like telemedicine, electronic health records (EHR), and health apps,
improving accessibility and efficiency of healthcare delivery. There are number of
health care apps operating in the country some of them are Net meds, Pharm easy,
Apollo 247 etc

2) Weakness

I. Infrastructure Gap: There is a significant gap in healthcare infrastructure between

urban and rural areas, with rural regions lacking basic healthcare facilities and skilled
personnel. The infrastructure gap often results in delayed or inadequate access to
healthcare services for rural populations. Limited healthcare facilities and
transportation challenges mean that rural residents may need to travel long distances
to reach the nearest healthcare facility, resulting in delayed diagnosis and treatment.
Moreover, the scarcity of healthcare professionals in rural areas can lead to longer
wait times for appointments and reduced availability of specialized care.

II. Underfunding: Public healthcare in India suffers from chronic underfunding, leading
to inadequate resources, staff shortages, and poor quality of care in government-run
hospitals. India’s government health spending at a little over 1% of gross
domestic product is among the lowest in the world.
Insufficient funding compromises the quality of care provided in public healthcare
facilities. Lack of investment in infrastructure maintenance, medical equipment, and
staff training can lead to deteriorating facility conditions, outdated technology, and
lower standards of care. This can result in medical errors, preventable complications,
and patient dissatisfaction.

III. Regulatory Challenges: Complex regulations and bureaucratic hurdles hinder the
growth and effectiveness of the healthcare sector, leading to delays in approvals and
investments.

IV. Absence or the humanpower crisis in healthcare: Any discussion on healthcare

delivery should include arguably the most central of the characters involved – the
human workforce. Do we have adequate numbers of personnel, are they appropriately
trained, are they equitably deployed and is their morale in delivering the service
reasonably high?

A 2011 study estimated that India has roughly 20 health workers per 10,000 population, with
allopathic doctors comprising 31% of the workforce, nurses and midwives 30%, pharmacists
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11%, AYUSH practitioners 9%, and others 9%.[16] This workforce is not distributed
optimally, with most preferring to work in areas where infrastructure and facilities for family
life and growth are higher. In general, the poorer areas of Northern and Central India have
lower densities of health workers compared to the Southern states

3) Opportunities

I. Healthcare Tourism: India has the potential to further capitalize on medical tourism
by offering high-quality treatments at competitive prices, leveraging its skilled
workforce and advanced infrastructure in select healthcare facilities. The India
Medical Tourism Market size is estimated at USD 7.69 billion in 2024, and is
expected to reach USD 14.31 billion by 2029, growing at a CAGR of 13.23% during
the forecast period (2024-2029).

II. Telemedicine and Digital Health: The increasing penetration of smartphones and
internet connectivity presents an opportunity for widespread adoption of telemedicine
and digital health solutions, especially in remote and underserved areas. By
leveraging telemedicine platforms, patients gain increased access to healthcare
services, regardless of their geographical location. This is particularly advantageous
for individuals residing in rural or underserved areas, where access to healthcare
facilities is limited. Additionally, telemedicine expands the reach of healthcare
providers, connecting patients with specialists and consultants who may not be readily
available locally.

III. Research and Development: Investing in research and development can lead to
breakthroughs in areas such as drug discovery, medical devices, and treatment
protocols, contributing to both domestic healthcare improvements and global
competitiveness.

3) Threat

I. Population Growth: Rapid population growth exacerbates the strain on healthcare

infrastructure and resources, leading to increased demand for services and potentially
compromising quality and accessibility. The growing population puts burden upon
the
public healthcare system for access to affordable healthcare services. public
healthcare infrastructure and resources are often insufficient to meet the needs of the
growing population. According to data from the National Health Profile 2019, India
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has only 0.55 doctors and 1.7 nurses per 1,000 population, well below the World
Health Organization's recommended minimum of 1 doctor per 1,000 population.

II. Brain Drain: The emigration of skilled healthcare professionals to other countries in
search of better opportunities creates a shortage of talent within the domestic
healthcare sector, affecting service delivery and quality. In many cases, healthcare
professionals, including doctors, nurses, and specialists, may perceive limited
opportunities for career advancement, professional development, and research in
India. The lack of adequate infrastructure, resources, and incentives for healthcare
professionals can drive them to seek opportunities abroad where they can access
better facilities, higher salaries, and more favorable working conditions.

III. Technological Disruptions: While technological advancements present opportunities,

they also pose threats such as data breaches, cybersecurity vulnerabilities, and
disruptions in traditional healthcare delivery models that may not be easily adaptable
or accessible to all segments of the population.

PESTEL ANALYSIS

1. Political Factors

Political factors refer to changes in tax legislation, consumer protection laws, employment
regulations, and insurance mandates that can significantly impact the healthcare industry.
These factors directly influence healthcare costs and operations. For instance, shifts in tax
policies may necessitate adjustments in strategies to either leverage increased government
spending on healthcare or accommodate reduced subsidies. Similarly, changes in
employment laws, such as legislation affecting overtime requirements, could prompt
healthcare organizations to modify staffing and overtime practices to remain compliant.

Political factors encompass various governmental actions and regulations that affect the
healthcare industry. It's crucial for healthcare entities to stay abreast of political changes to
adapt their strategies accordingly and remain compliant with evolving regulations.

Example of Ranbaxy Laboratories

In 2008, the U.S. Food and Drug Administration (FDA) issued a warning letter to Ranbaxy
regarding violations of manufacturing practices at its facilities in India. The FDA highlighted
concerns about data integrity, quality control procedures, and documentation practices at
these facilities. This warning letter had significant implications for Ranbaxy's ability to
export its products to the United States, one of its key markets.

As a result of the FDA's warning letter and subsequent investigations, Ranbaxy faced
challenges in obtaining regulatory approvals for its products, and some of its products were
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even banned from the U.S. market. This had a detrimental impact on Ranbaxy's business
operations and financial performance.

The political aspect of this situation lies in the regulatory actions taken by the U.S.
government through the FDA. Changes in import and export procedures, as well as
documentation requirements, were enforced due to concerns raised by regulatory authorities
regarding the quality and safety of Ranbaxy's pharmaceutical products.

2. Social & Cultural Factors

Sociocultural factors involve changes in demographics, values, and beliefs within different
consumer groups, which also impact healthcare services. Understanding the community being
served helps healthcare providers avoid conflicts with prevalent values or norms. Moreover,
cultural beliefs and preferences affect individuals' choices regarding healthcare, with some
preferring traditional methods while others opt for alternative or holistic approaches.

Sociocultural factors highlight the importance of understanding the diverse backgrounds and
preferences of healthcare consumers. This knowledge enables healthcare organizations to
tailor their services and marketing strategies effectively. By aligning with the values and
beliefs of target demographics, providers can enhance their engagement and performance
within communities.

Example of Ranbaxy Laboratories

In 2008, Ranbaxy Laboratories, one of India's leading pharmaceutical companies, faced

significant challenges related to its export business due to sociocultural factors. The company
had been accused of producing and selling adulterated drugs, including generic versions of
popular medications such as Lipitor and Diovan, which raised concerns about the safety and
efficacy of their products.

This situation had a profound impact on Ranbaxy's ability to export its pharmaceutical
products to various countries, particularly to markets in the United States and Europe, where
stringent quality standards are enforced and consumer trust in pharmaceutical safety is
paramount.

Sociocultural factors played a crucial role in shaping the response to Ranbaxy's quality
issues. Consumers in Western markets, influenced by cultural attitudes emphasizing the
importance of safety and quality in healthcare products, became increasingly wary of
purchasing medications from Ranbaxy. Regulatory authorities in these markets also
intensified scrutiny of Ranbaxy's manufacturing practices and product quality standards,
leading to import bans, product recalls, and legal penalties.
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As a result, Ranbaxy Laboratories had to invest significant resources in revamping its

manufacturing processes, implementing stricter quality control measures, and rebuilding trust
with consumers and regulatory agencies.

3. Legal Factors

Legal factors encompass adherence to laws and regulations governing healthcare operations,
including compliance with HIPAA regulations, pending lawsuits, and potential mergers.
Failure to comply with legal requirements can lead to severe consequences for healthcare
organizations. Additionally, taxation laws applicable to the healthcare industry must be
considered and complied with accordingly.

Legal factors emphasize the necessity for healthcare organizations to operate within the
bounds of established laws and regulations. Compliance with legal requirements such as
HIPAA ensures patient confidentiality and avoids legal liabilities.

Example of Ranbaxy Laboratories

In 2013 with the U.S. Department of Justice (DOJ) regarding allegations of fraudulent
conduct in relation to the company's generic drug applications.

In this case, Ranbaxy Laboratories was accused of submitting false data and statements to the
FDA as part of its Abbreviated New Drug Applications (ANDAs) for generic drugs. The DOJ
alleged that Ranbaxy had knowingly made false statements about the quality and reliability of
its products, including claims related to stability testing, manufacturing processes, and data
integrity.

As a result of the investigation, Ranbaxy agreed to pay a substantial settlement amount of

$500 million to resolve both civil and criminal charges. Additionally, the company entered
into a consent decree with the FDA, which required it to implement stringent compliance
measures and undergo regular inspections of its manufacturing facilities to ensure adherence
to quality standards.

This legal settlement had significant implications for Ranbaxy Laboratories, impacting its
reputation, financial standing, and future operations.
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DGFT & POLICIES OF IMPORT AND EXPORT

Drugs and Medicines (98041000)

https://www.dgft.gov.in/CP/

The above graph shows all the countries from which India import drugs and medicines with
USA having the major share of approx. 50 million USD. (Source: DGCI&S)
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The above graph shows all the countries to which India export Drugs and Medicines with
Nepal having the major share of approx. 10000 USD. (Source: DGCI&S)

The above graph shows the states that contribute the most for export of drugs and medicines
for India with Maharashtra having the major share of 90000 USD. (Source: DGCI&S)
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 Merchandise exports have shown fluctuations over the years, with a significant
increase from 2018-19 to 2019-20, followed by a decrease in 2020-21 and further
fluctuations in subsequent years.

 Merchandise imports have generally shown an increasing trend, with a substantial

increase from 2020-21 to 2021-22.

 Quantity-wise, both exports and imports also show variations, with notable increases
in some years.

 (Source: DGCI&S)

Import Policies (Drugs and Medicines)

The import policies regarding the import of drugs and medicines in India, as outlined in the
provided excerpts, can be explained as follows:

 Applicability of General Chapter: This provision states that certain goods, even if
they fall under more specific headings in the Schedule, are subject to the conditions
outlined in the chapter. This suggests that regardless of where drugs and medicines
may be categorized specifically, they are subject to the regulations mentioned within
this chapter.

 Heading 9801: This heading applies to goods imported in accordance with

regulations under the Customs Act, 1962. The regulations define expressions used in
this heading. This implies that drugs and medicines imported under specific
regulations, likely pertaining to customs procedures or drug importation guidelines,
fall under this heading.

 Heading 9802: This heading covers laboratory chemicals, specifying their

characteristics such as packaging not exceeding certain limits and intended use solely
for laboratory purposes. While not explicitly mentioning drugs and medicines, this
could encompass certain chemicals used in pharmaceutical research and development.
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 Exclusions from Headings 9803 and 9804: These headings do not apply to motor
vehicles, alcoholic beverages, tobacco and tobacco products, as well as articles
imported by passengers or crew members under specific conditions. This exclusion
suggests that drugs and medicines are not covered under these headings but are
subject to other regulations.

 Heading 9803 Exemption for Personal Use: Goods imported by passengers or crew
members for personal use, under specific licenses or permits, are exempt from
heading 9803. This could include certain medicinal products brought in by individuals
for personal health purposes.

 Heading 9804 Exemption for Licensed Imports: Articles imported under import
licenses or Customs Clearance Permits are not covered under heading 9804. This
implies that drugs and medicines imported under specific licensing arrangements have
different regulatory considerations.

 Heading 9804 Exemption for Printed Books: This heading does not apply to
printed books. While not directly related to drugs and medicines, this provision
highlights certain exemptions within the broader import regulations, indicating that
certain categories of goods have specific treatment.

 Import Policy: The import policy for this category is listed as "Free," indicating that
there are no duties imposed on these imports.

 Policy Condition: Subject to conditions specified by DGHS: While the import of

drugs and medicines under this category is duty-free, it is subject to conditions
specified by the Directorate General of Health Services (DGHS). This implies that
there are regulatory requirements and standards set by the DGHS that importers must
adhere to when bringing drugs and medicines into the country.

Export Policies (Drugs and Medicines)

 Export Policy for Drugs:

o This indicates that there hasn't been any contemplation for a new export policy
specifically for domestically manufactured drugs. However, it mentions the
announcement of the new Foreign Trade Policy (FTP) 2023, aimed at boosting
trade, manufacturing, exports, and ease of doing business. This policy is
expected to enhance local manufacturing and make exports more competitive.

 Steps to Reduce Dependence on Imports:

o To reduce dependence on imports, the government is implementing several

schemes:
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 Production Linked Incentive (PLI) Scheme for promoting domestic

manufacturing of critical Key Starting Materials (KSMs)/ Drug
Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs).

 Production Linked Incentive Scheme for Pharmaceuticals.

 Scheme for Promotion of Bulk Drug Parks.

o These schemes provide financial incentives to manufacturers for producing

identified products domestically.

 Measures to Ensure Quality for Exported Drugs:

o Regulatory measures have been taken to encourage indigenous manufacturing

of drugs, including amendments to the Drugs Rules, 1945, and increased
application fees for import registration and overseas inspection.

o Manufacturers are required to obtain licenses for drug manufacturing from the
concerned authorities and comply with the requirements of importing
countries.

 Incidents of Adulteration:

o The report mentions that in the financial year 2022-23, a total of 89,729 drug
samples were tested, out of which 422 were declared spurious/adulterated.

 Actions Taken:

o The response doesn't explicitly detail the actions taken specifically regarding
the incidents of adulteration. However, it outlines various schemes and
regulatory measures aimed at promoting domestic manufacturing, ensuring
quality, and regulating drug exports.

Medical Equipment (90)

https://www.dgft.gov.in/CP/
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The above graph shows the countries importing from India with USA having the major share
of 400000000 USD. (Source: DGCI&S)

The following graph depicts the countries to whom India exports Medical Equipments with
USA having the major share of approx. 250000000 USD. (Source: DGCI&S)
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The above graph shows the states that contribute towards the export of Medical Equipment
with Haryana having the major share of approx. 300000000 USD. (Source: DGCI&S)

 For the years 2018-19, 2019-20, 2020-21, and 2021-22, there are no recorded values
for merchandise exports or imports, indicating either no trade or missing data for
these years.

 In 2022-23, there are two entries. One shows significant merchandise exports worth
32,317.136 thousand USD, while the other shows substantial merchandise imports
totaling 11,27,686.298 thousand USD. This suggests a significant trade imbalance
favoring imports in this year.
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 The second entry for 2022-23 shows exports of 11,27,686.298 thousand USD with no
corresponding imports recorded, indicating either an error in reporting or a significant
discrepancy in the data.

 (Source: DGCI&S)

Import Policy (Medical Equipment)

The import policy for medical equipment, as outlined in the provided excerpts, can be
explained as follows:

 Exclusions: The chapter specifies certain exclusions from its coverage, such as
articles made of specific materials like rubber, leather, textile, refractory goods,
mirrors, certain metal goods, and various technical instruments and apparatus. This
implies that medical equipment falling under these categories is not covered by this
chapter.

 Classification of Parts and Accessories: Parts and accessories for machines,

apparatus, instruments, or articles of this chapter are classified according to specific
rules. They are generally classified in their respective headings if included in Chapter
90, 91, 84, or 85. If suitable for use solely or principally with a particular kind of
machine, they are classified with that kind of machine. Otherwise, they are classified
in heading 9033.

 Application of Notes 3 and 4 to Section XVI: The provisions of Notes 3 and 4 to

Section XVI, which likely pertain to classification rules for machinery and
mechanical appliances, also apply to this chapter.

 Telescopic Sights and Instruments: Heading 9005 does not apply to certain
telescopic sights and telescopes designed for specific uses, which are instead
classified under heading 9013.

 Classification of Measuring Optical Instruments: Measuring or checking optical

instruments that could potentially be classified under both heading 9013 and heading
9031 are classified under heading 9031.

 Orthopaedic Appliances: The expression "orthopaedic appliances" is defined,

encompassing appliances for preventing or correcting bodily deformities or
supporting parts of the body following an illness, operation, or injury. This includes
footwear and special insoles designed for orthopaedic purposes.
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 Scope of Heading 9032: Heading 9032 applies specifically to instruments and

apparatus for automatically controlling various factors such as flow, level, pressure,
temperature, and electrical quantities. These instruments are designed to bring these
factors to and maintain them at desired values.

 Import Policy: The import policy for this category is not explicitly mentioned in the
provided excerpt. However, it can be inferred that since this category encompasses
medical equipment, it likely falls under specific import policies and regulations set by
the Indian government for healthcare-related imports.

 Policy Condition: The policy condition column is empty in the provided excerpt, so
specific conditions related to the importation of medical equipment are not mentioned
here. However, it's common for medical equipment imports to be subject to various
regulatory requirements, including quality standards, certification, and licensing
procedures.

Export Policy (Medial Equipment)

As of now there is no clear export policy of medical equipment in India. But some initiatives
are being taken by government:

 The government of India on Thursday has decided to set up a separate Export

Promotion Council (EPC) for Medical Devices, to boost exports of medical devices.

 "Based on the detailed deliberations in the meetings held by the Department of

Commerce (DoC) with regard to the creation of an EPC for Medical Devices, and the
suggestions/responses received from stakeholders in the medical devices sector,
approval of DoC, GoI is hereby conveyed to the setting up of an EPC for Medical
Devices," an official memorandum issued on Wednesday by the government said.

 The EPC will help exporters in promoting their products in international markets
through various promotional activities including organising and participating in
international trade fairs, buyer-seller meets, in line with the foreign trade policy of
India. The Council may also organise awareness campaigns regarding the assistance
available for the MSME exporters under various government schemes.

 The government said it will provide Rs 3 crore initial financial support, free office of
around 5000 sqft area at the upcoming Medical Devices Park Common Facility
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Centre (CFC), Greater Noida and required secretarial staff. Till the completion of the
CFC, YEIDA shall provide suitable office space in their current building.

 The EPC for medical devices will be under the administrative control of the
Department of Pharmaceuticals, which is a part of the Ministry of Commerce and
Industry. It will be administered by a committee of administration (CoA) that have
both the nominated and elected members from the government and medical device
industry.

APPLICATION OF VARIOUS THEORIES

Mercantilism:

The theory of mercantilism states that each country should focus on exporting more and more
and try to cut down the import. India is applying this theory in the healthcare sector by
curtailing its import with the help custom duties on import of medical equipment which is
around 7.5 – 10%. Though there has been several recommendations have been given to gov
to reduce the import duty in order to get cheaper medical equipment which off course relates
to basic human needs.

taxes on medical devices in India are among the highest in the world. There is no customs
duty on import of medical devices in countries like Singapore, Hong Kong, Italy and
Norway, while Australia and Japan levy just 0.5% duty. In the United States...

According to Pavan Choudary, Chairman Medical Technology Association of India, a large

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number of medical devices are imported illegally in India to avoid taxes. “Such products
don’t get proper service and thus pose risks to patients. Moreover, it’s a...

Comparative Advantage:

The US likely has an advantage in some areas, particularly for complex or high-tech medical
equipment that requires significant research and development, it would we better for the india
to import these high tech instrument rather himself producing whereas if we talk about India
it is a major producer of generic drugs and medical equipment, which are often more
affordable. India is also the largest provider of generic medicines globally, occupying a 20%
share in global supply by volume. The industry manufactures about 60,000 different generic
brands across 60 therapeutic categories.

CONCLUSION

In conclusion, the thorough examination of export-import management theories, SWOT and

PESTEL analyses of India's healthcare sector, and insights into import and export policies for
drugs, medicines, and medical equipment collectively provide a comprehensive
understanding of India's position in the global healthcare landscape.

Export-import management theories serve as guiding principles for businesses venturing into
international trade, offering strategies to enhance competitiveness, navigate market
complexities, and capitalize on opportunities while mitigating risks. Ranbaxy's global
expansion strategies exemplify the practical application of these theories, demonstrating the
importance of leveraging comparative advantages and strategic market entry modes.

The SWOT and PESTEL analyses shed light on the strengths, weaknesses, opportunities, and
threats within India's healthcare sector, alongside the political, economic, social,
technological, environmental, and legal factors influencing its operations. India's healthcare
industry exhibits strengths such as cost advantages, a robust pharmaceutical sector, and
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technological adoption, yet faces challenges like infrastructure gaps, regulatory hurdles, and
workforce shortages.

Import and export policies for drugs, medicines, and medical equipment underscore India's
efforts to promote domestic manufacturing, ensure product quality and safety, and facilitate
international trade. While import policies reflect efforts to protect domestic industries, export
policies aim to reduce dependence on imports and boost exports through incentives and
regulatory measures.

The application of economic theories such as mercantilism and comparative advantage

further elucidates India's trade dynamics in the healthcare sector. While mercantilist policies
prioritize exports and limit imports, comparative advantage recognizes India's strengths in
producing generic drugs and affordable medical equipment, positioning the country as a key
player in the global healthcare market.

In summary, the integration of export-import management theories, strategic analyses, and

policy insights provides a comprehensive framework for understanding India's healthcare
landscape and guiding strategic decision-making. By addressing challenges, leveraging
strengths, and capitalizing on opportunities, India can continue to evolve as a leading
provider of accessible, affordable, and high-quality healthcare services on the global stage.

FUTURE RECOMMENDATIONS

Based on the comprehensive analysis of India's healthcare sector provided above, here are
some future recommendations:

1. Investment in Infrastructure: Addressing infrastructure gaps should be a priority to

improve healthcare accessibility and quality. This includes investments in healthcare
facilities, medical equipment, and digital infrastructure for telemedicine and remote
healthcare delivery.

2. Regulatory Reforms: Streamlining regulatory processes and reducing bureaucratic

hurdles can encourage innovation, attract investment, and expedite the approval of
new drugs and medical devices. Simplifying licensing procedures and ensuring
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compliance with international quality standards will enhance competitiveness and

facilitate exports.

3. Workforce Development: Initiatives to address the shortage of skilled healthcare

professionals are crucial. This can be achieved through investments in education and
training programs, incentives for healthcare professionals to work in underserved
areas, and collaboration with academic institutions and industry partners.

4. Promotion of Domestic Manufacturing: Continued support for domestic

manufacturing of pharmaceuticals and medical equipment is essential. This can be
achieved through incentives such as tax breaks, subsidies, and streamlined regulatory
processes to encourage investment and innovation in the sector.

5. International Collaboration: Collaborating with international partners can facilitate

technology transfer, knowledge sharing, and capacity building in the healthcare
sector. Partnerships with foreign governments, research institutions, and industry
stakeholders can drive innovation and accelerate the adoption of best practices.

6. Quality Assurance and Safety Measures: Strengthening quality assurance measures

and implementing strict regulatory oversight are imperative to ensure the safety and
efficacy of healthcare products. This includes rigorous testing, monitoring of supply
chains, and enforcement of quality standards to prevent the entry of counterfeit or
substandard products into the market.

7. Market Diversification: While India has established itself as a major supplier of

generic drugs and medical equipment, diversifying into niche markets and high-value
segments can further enhance competitiveness. This involves identifying emerging
trends, understanding consumer preferences, and adapting product offerings to meet
evolving market demands.

8. Sustainable Growth: Balancing economic growth with environmental sustainability

is crucial. Embracing green practices, reducing carbon footprint, and investing in
renewable energy sources can contribute to sustainable development while ensuring
long-term viability of the healthcare sector.

By implementing these recommendations, India can address existing challenges, leverage its
strengths, and capitalize on emerging opportunities to further strengthen its position as a
global leader in the healthcare industry.