India may lose outsourcing deals after Mumbai attacks

A number of pharmaceutical companies have canceled visits to India after last week's tragic attacks in Mumbai. According to industry experts, Indian drug makers may lose out on opportunities to secure new outsourcing contracts as a result. Two large networking events, P-MEC India and CPhI Worldwide, were to open last week, but both were postponed. Most of the pharma companies in Mumbai also closed their offices last week following the attacks. But according to industry sources, although "the attacks may have an impact in the short-term, [they] will not have any long-term effect," India's Business Standard reports. 

Others still fear the attacks will have a lasting impact. "Such repeated terrorist attacks will mar our business prospects, especially from Fortune 500 companies, who are closely observing the developments," said Ranjit Shahani, president, Indian Merchant's Chamber and vice-chairman and managing director of Novartis India. "Apart from the global meltdown, this will add more worries to our economic growth."

Some say India's loss could be China's gain. China has not had to deal with terrorist attacks and has appeared more economically stable, Ajit Kamath, chairman and managing director, Arch Pharmalabs, tells the Business Standard. "India will have to assure the international community of tough measures, both on the security and economic front," he explained.

- read India's Business Standard for more