Pharma Exports See Double Digit Growth After a Gap of Three Years
Pharma Exports See Double-Digit Growth After a Gap of Three Years – According to Pharmaceutical Export Promotion Council (Pharmexcil), the Indian pharmaceuticals industry has been a positive double-digit growth in the exports after 3 years of negative or margin growth. This financial year has been fruitful as a result of an increase in export in major countries like America, China etc. Experts repot a good future with a growing base due to many factors like change in policies of exports, liberalization etc.
The Growth of Pharma Exports 2018
The Indian pharmaceuticals exports saw a surge in growth last year when 8 percent decline in exports to the US market (equivalent to 30 percent of total Indian pharma exports), the export value growth 2.91 percent to USD 17.27 billion. On the other hand, in the fiscal year of 2016-17, negative growth of 0.47 percent was witnessed when compared to positive growth of 9.7 percent during the year 20215-26.
The year of 2018 has been surprising for the pharmaceuticals sector in India. Over the past few months, a negative to slow growth has been witnessed but in April 2018, a double-digit growth of 13.29 percent has been witnessed whereas in May 2018, a growth as high as 25 percent on a year-on-year basis. Even if we compare exports to the US in April 2017 and 2018, 2017 witnessed a downfall of 10% whereas, in 2018, the growth has been 17.47 in the same month. Same goes with May 2017 which companies have reported being the worst month for exports and saw a surge of 25 percent this 2018.
In the month of April out of top 25 export destinations, 20 showed a good growth rate whereas 5 were negative as per Pharmexcil. Exports of formulations and bulk drugs accounted for 92 percent in that month which includes formulations, herbal, vaccines, bulk drugs, and surgical etc. This is due to the rise in pharmaceuticals exports across major markets like South Africa, the US, and the CIS countries. The on-going regulatory barrier that companies once faced in certain markets were removed. Therefore, the removal of those policies helped in raising the initial exports.
Future Of Pharma Exports in India
The positive growth of the Indian pharmaceuticals export can be expected to rise and even touch $20 billion by the end of 2020. Even though shipment to the US has hit hard in recent few times, the exports to other countries have opened up its ways especially China. India is a major exporter of active pharmaceutical ingredient (API) drugs after China has been receiving good demand. This year an increase of 44 percent to $182.67 million has been witnessed. Experts say that a positive trend in Latin America and the Commonwealth of Independent States has been seen and are skeptical about it.
Conclusion
Major MNC companies like Sun Pharma, Cipla etc have been able to remove obstructions of regulatory issues. The rise in new launches and new approvals are yet to smoothen the flight of exports. Under the strict scan of US Food and Drug Administration (US FDA), many big companies like Sun Pharma and Dr. Reddy’s Laboratories have been facing bigger challenges. In this course, many mid to small companies have substantially generated decent sales from US exports.