PXL/HO/Cir-133/2020-21 Date: 26.02.2021
Subject: Opportunity for set up of manufacturing facility in Panama
Members are kindly aware that Pharmexcil with support from the Department of Commerce and our missions abroad has been promoting and facilitating Indian pharmaceutical exports in the global arena.
The council is in receipt of communication from our mission in Panama wherein the government of acting President H.E. Laurentino Cortizo is leading the way to develop Panama as a pharmaceutical hub to cater neighboring countries and the Central American region.
Panama has used its strength as a transport hub to create Free Trade Zones (FTZs), Colon (FTZ) being the second largest FTZ after Hong Kong. (Companies willing to expand in the region can utilize Colon free trade zone warehouse facilities while operating in the country.)
The country largely depends on imports for its medicinal needs and yet India ranks 14th in the list of countries from where Panama imports medicines sharing 2.3% of the total import value. As on date, no Indian company has established a manufacturing facility in Panama despite various incentives provided by the Government.
It is believed to be the suitable time for interested Indian companies, especially the ones familiar with the market, to explore the feasibility of establishing a manufacturing unit in Panama. This will further grant accessibility to adjoining countries and the entire Central American region.
A preliminary feasibility report prepared by United Nations Industrial Development Organization (UNIDO) is enclosed herewith for your information. Member companies looking forward to expanding and setting up manufacturing units in Panama are requested to study the feasibility report for detailed information and clarity on the proposed pharmaceutical hub.
Our mission in Panama has further assured to assist any Indian firm keen to set up a manufacturing plant in Panama.
Encl: Feasibility Report