India has proposed joint ventures with Russian pharmaceutical companies to manufacture 500 drugs in Russia and supply them to markets in Russia, Belarus and Kazakhstan.

Responding “positively” to the suggestion by the Indian Commerce, Industry and Textiles Minister, Mr Anand Sharma, during a bilateral meeting, the Russian Minister of Economic Development, Ms Elvira Nabiullina, said, “ joint ventures are good idea. Pharma sector is a good example where we can cooperate.”

Russia will soon “provide a list of 500 drugs (mostly generic and strategic).” Of these, 75 per cent is currently imported by Russia. Russia has also agreed to give information on the volume of production required in respect of 57 strategically identified medicines, official sources said. Russia, Belarus and Kazakhstan have recently formed a new customs union pact. If the proposal for joint ventures becomes a reality, Indian companies manufacturing these drugs in Russia will be able to access the markets in all the three countries, they said.

Diamond Supply
Mr Sharma also asked Ms Nabiullina to help in early conclusion of a pact for long-term supply of rough diamonds from the Russian diamond major Alrosa and its precious minerals repository Gokhran to India's Hindustan Diamond Co and MMTC. India also wants Gokhran to invite MMTC and Hindustan Diamond Co to take part in their sales. The Russian Minister said she would look into the matter, the sources said.

Union Budget 2012-13

The Union Budget for 2012-13 has been presented by Mr Pranab Mukherjee, the Union Finance Minister, in Parliament on March 16, 2012.

Here are the highlights of Union Budget 2012-13

Overview of the Economy

• GDP is estimated to grow by 6.9 per cent in 2011-12
• Indian economy is expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12
• Developments in India's external trade in the first half of current year have been encouraging. Diversification in export and import market achieved

Investment Environment

• Efforts to arrive at a broadbased consensus in consultation with the State Governments in respect of decision to allow FDI in multi-brand retail upto 51 per cent
• Rajiv Gandhi Equity Saving Scheme to allow for income tax deduction of 50 per cent to new retail investors, who invest upto Rs 50,000 (US$ 995.39) directly in equities and whose annual income is below Rs 1,000,000 (US$ 19,892) to be introduced. The scheme will have a lock-in period of 3 years
• Various steps proposed to be taken for deepening the reforms in the Capital markets, including simplifying process of IPOs, allowing QFIs to access Indian Bond Market etc.
• To protect the financial health of Public Sector Banks and Financial Institutions, Rs 15,888 crore (US$ 3.15 billion) proposed to be provided for capitalisation. Possibility of creating a financial holding company to raise resources to meet the capital requirements of PSU Banks under examination
• A central "Know Your Customer" depository to be developed in 2012-13 to avoid multiplicity of registration and data upkeep

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