Indian Pharma exports to cross US$ 100 Billion
Hyderabad: Indian pharma exports may witness a growth of 20 per cent during the current financial year, according to PV Appaji, executive director, Pharmaceutical Export Promotion Council (Pharmexcell). The exports in the last fiscal stood at Rs 42,000 crore or approximately US$ 90 Billion.
'We expect the growth to be 20 per cent this year as the sector is coming of the recession effect', said Mr. Appaji.
During 2009-10, the pharmaceutical exports saw only 4.13 per cent growth over the previous year. While the effect of slowdown on the other sectors was visible during 2008-09, the pharmaceutical sector witnessed it only during 2009-10. 'The inventories of drugs lasted for period 2009-10 when the slowdown was at its peak,' he said.
However, barring 2009-10, the pharmaceutical sector saw a compounded annual growth rate of around 17 per cent over the years, he said.
During 2008-09, bulk drugs accounted for 42 per cent of the exports, formulations 56 per cent and herbals and ayurveda contributed the balance 2 per cent.
The US imports 22 cent of the total pharma exports from India, Africa 16 per cent and Commonwealth of Independent states eight per cent. In all, the pharma products are exported to 220 countries and colonies. Singapore, Malaysia, Vietnam, Russia, Ukraine, South Africa, Nigeria and Kenya are now the focus countries for exports, said Appaji.
Among the pharma exporting states, Maharashtra leads with 38 per cent contribution, followed by Andhra Pradesh at 23 per cent.
Appaji said the Indian pharmaceutical exports to Japan were expected to grow significantly owing to the bilateral free trade agreement signed this week, which would abolish duties on more than 90 per cent of the trade for ten years. '`Japan is a small market now. But we expect Japan to take about five per cent of the total exports in three to four years,' he said.
Though India was seen as a hub of generics, adverse publicity by certain companies was hurting the exports, he said citing instances of pharma shipments stranded on the shores. '`Pharmexcil has taken up this matter to the notice of the government and this is almost settled,'' he said.
On the proposed tracking and tracing mechanism that helps locate the origin of the pharma products, he said, 'Many companies said they would not be in the position to bar code the products by the July 1 deadline. Also, the companies say it is difficult to have bar codes on primary packages of small products. We will have broader debate on this in March.'
Further, Appaji said the off-patent regime will also be to India's advantage since nearly one-third of the total abbreviated new drug applications filed globally is from India.
Hyderabad: Indian pharma exports may witness a growth of 20 per cent during the current financial year, according to PV Appaji, executive director, Pharmaceutical Export Promotion Council (Pharmexcell). The exports in the last fiscal stood at Rs 42,000 crore or approximately US$ 90 Billion.
'We expect the growth to be 20 per cent this year as the sector is coming of the recession effect', said Mr. Appaji.
During 2009-10, the pharmaceutical exports saw only 4.13 per cent growth over the previous year. While the effect of slowdown on the other sectors was visible during 2008-09, the pharmaceutical sector witnessed it only during 2009-10. 'The inventories of drugs lasted for period 2009-10 when the slowdown was at its peak,' he said.
However, barring 2009-10, the pharmaceutical sector saw a compounded annual growth rate of around 17 per cent over the years, he said.
During 2008-09, bulk drugs accounted for 42 per cent of the exports, formulations 56 per cent and herbals and ayurveda contributed the balance 2 per cent.
The US imports 22 cent of the total pharma exports from India, Africa 16 per cent and Commonwealth of Independent states eight per cent. In all, the pharma products are exported to 220 countries and colonies. Singapore, Malaysia, Vietnam, Russia, Ukraine, South Africa, Nigeria and Kenya are now the focus countries for exports, said Appaji.
Among the pharma exporting states, Maharashtra leads with 38 per cent contribution, followed by Andhra Pradesh at 23 per cent.
Appaji said the Indian pharmaceutical exports to Japan were expected to grow significantly owing to the bilateral free trade agreement signed this week, which would abolish duties on more than 90 per cent of the trade for ten years. '`Japan is a small market now. But we expect Japan to take about five per cent of the total exports in three to four years,' he said.
Though India was seen as a hub of generics, adverse publicity by certain companies was hurting the exports, he said citing instances of pharma shipments stranded on the shores. '`Pharmexcil has taken up this matter to the notice of the government and this is almost settled,'' he said.
On the proposed tracking and tracing mechanism that helps locate the origin of the pharma products, he said, 'Many companies said they would not be in the position to bar code the products by the July 1 deadline. Also, the companies say it is difficult to have bar codes on primary packages of small products. We will have broader debate on this in March.'
Further, Appaji said the off-patent regime will also be to India's advantage since nearly one-third of the total abbreviated new drug applications filed globally is from India.
News Posted: 18 February, 2011
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