1976: सरकार विदेशी दवा कंपनियों पर कब्ज़ा करने पर विचार कर रही है

The Hathi Commission report, as per the topic, recommended the government to consider taking over foreign drug companies. It's important for Prelims as it highlights a historical perspective on industrial policy and government intervention in the pharmaceutical sector.

Mr. P.C. Sethi, the Minister of Chemical and Fertilizers, informed the Lok Sabha about the government's consideration of taking over foreign drug companies in 1976.

The history of foreign drug companies in India dates back to the pre-independence era, with many European firms establishing a presence to cater to the colonial market. Post-independence, the government's focus shifted towards self-reliance and affordable healthcare.

In this context, 'nationalization' means the government taking ownership and control of foreign drug companies. It was considered to achieve self-reliance and provide affordable healthcare by reducing the dominance of multinational corporations.

Arguments in favor included reducing the dominance of MNCs, ensuring affordable drug prices, and promoting self-reliance in the pharmaceutical sector. Mr. Ramavtar Shastri criticized the activities of multinational corporations and called for their nationalization.

Potential drawbacks include reduced foreign investment, potential loss of innovation and technology transfer, and the administrative challenges of managing nationalized entities. The matter was described as 'complex' by Mr. P.C. Sethi.

Recent developments include the industry becoming a major exporter of generic drugs, but issues related to drug pricing, quality control, and regulatory compliance persist. The government has taken steps to strengthen the regulatory framework and promote domestic manufacturing through initiatives like the Production Linked Incentive (PLI) scheme.

Both reflect the government's aim to promote domestic manufacturing and reduce reliance on foreign entities in the pharmaceutical sector. While nationalization is a more direct intervention, PLI schemes incentivize domestic production through financial benefits.

The Patents Act of 1970 was a landmark legislation aimed at reducing the dominance of multinational corporations (MNCs) by allowing process patents rather than product patents, making it easier for Indian companies to produce generic versions of drugs.

The key people involved were Mr. P.C. Sethi (the Minister of Chemical and Fertilizers), Ramavtar Shastri, and Hiren Mukherjee, who raised the discussion in the Lok Sabha.