Small and medium enterprises Pharmaceutical industry in India

as promising future whole, outlook small , medium enterprises (sme) not bright. excise structure changed companies have pay 16% tax on maximum retail price (mrp) of products, opposed on ex-factory price. consequently, larger companies cut on outsourcing , business left shifted companies facilities in 4 tax-free states – himachal pradesh, jammu , kashmir, uttaranchal, , jharkhand. consequently, large number of pharmaceutical manufacturers shifted plant these states, became impossible continue operating in non-tax free zones. in matter of couple of years excise duty revised on 2 occasions, first reduced 8% , 4%. result, benefits of shifting tax free zone negated. resulted in, factories in tax free zones, start third party manufacturing. under these factories produced goods under brand names of other parties on job work basis.

as smes wrestled tax structure, scrambling meet 1 july deadline compliance revised schedule m manufacturing practices (gmp). while should beneficial consumers , industry @ large, smes have been finding difficult find funds upgrade manufacturing plants, resulting in closure of many facilities. others invested money bring facilities compliance, these operations located in non-tax-free states, making difficult compete in wake of new excise tax. swas medicare 1 of small scale leading pharmaceutical company of india , owned , founded physician.