European demand pushes up Indian pharma exports

Exports of Indian pharmaceuticals products have reported strong growth in FY19, Commerce Ministry data showed. Higher demand from major client base such as North America, Europe boosted the trend.

According to a Commerce Ministry data, pharma exports fetched US$17.27 billion in FY18 and US$16.7 billion in the previous fiscal. Of the total, exports to North America constituted over 30 per cent, followed by Africa and the European Union at 19.37 per cent and 15.92 per cent, respectively. Further, a gradual rise in demand from China created scope for this rise. Other destinations such as Russia, Nigeria, Brazil and Germany also saw higher export share than the earlier years.

The Indian pharma industry is considered as the largest generic drug supplier. Generic drugs form the largest chunk of the domestic pharmaceutical industry which stands at 75 per cent of the total.

Industry, though, will have to face relative issues such as currency fluctuations and regulatory approvals, etc. Factors such as national pricing policy for drugs, rising spending power, health awareness, government initiatives such as ‘Jan Aushadhi’ also fuels domestic sales. Indian pharma sector registered 10 per cent CAGR growth over the last few years and is expected to grow to US$55 billion by FY20.