In paragraph 16 of the Government report, it is mentioned that in spite of the robust growth of exports, India's trade deficit continues to be large as the growth of imports has consistently outpaced the growth of export. In this sense, do you consider that the trade deficit which presents India could generate a problem for its economy? If yes, what kind of measures India would take to solve this?
Reply: Even though India's exports have grown at reasonably high rates in recent years, imports have been growing at faster rates, with the result that trade deficit has remained high. The surpluses on invisibles have not been able to cover the trade deficit. Foreign investment flows have helped. However, a reasonably balanced trade is the most sustainable scenario on the external economic front. Persistent trade deficits could result in macro economic instability and over dependence on foreign investment inflows. Investment inflows themselves may not be sustainable in the face of persistent trade deficits.
India is addressing the issue through creation of an environment more conducive to expansion of production and exports. Certain constraints to production and exports in the form of infrastructural bottlenecks, high transaction costs, skill development of the work force, technology upgradation, trade facilitation etc. are being addressed.
Efforts are also being made to identify new products and markets in various parts of the world. Strategic market access initiatives, including free trade agreements, are also being pursued.
Questions to India in Regards to Intellectual Property
Chile 3:
In terms of patents and that established in paragraph 251(WTO Secretariat Report) regarding the necessary prior permission to patent when the applicant does not wish to file a patent application in India prior to filling abroad, does this apply to both residents and non residents. In other words, in the case of an invention developed in India by a foreign company would this company have to request permission to be able to file a patent in the US before it files for a patent in India?
Reply: If the inventor for the invention developed in India by the foreign company is a resident in India, the company is required to seek permission under Section 39 of the Patents Act, 1970 for foreign filing before filing in India.
Chile 4:
In regards to pharmaceutical patents, and the requirement of proof of efficiency in order to prove inventive step that appears in paragraph 250, we would like to inquire in the case of a pharmaceutical product, is a sanitary permit for its commercialization or circulation within the Indian market required, and if so: (i) Does this permit require evidence of efficiency and how would this differ from that required by the patent authority; and (ii) what is the link between the sanitary permit and that patent, in other words would the existence of a patent impede the granting of a sanitary permit on a generic product and to what extent.
