India’s pharmaceutical exports in May registered a 10.45% increase to $2,301.88 million compared with the $2,084.06 million in the same period previous fiscal.
“It is moving in a positive way and we are optimistic of sustaining growth of not less than 10%,” Pharmaceuticals Export Promotion Council of India Director General Ravi Uday Bhaskar said on the quick estimates numbers released last week by the Centre.
For the first two months of current fiscal, the exports were 8.85% higher at $4,730.66 million ($4,346.03 million). In April, the exports increased 7.36% y-o-y to $2.43 billion ($2.26 billion)
A key component of India’s export basket, pharma exports rose 9.6% year on year to $27.8 billion in 2023-24. Pharmexcil, a body under the Commerce Ministry, is pursuing a target of $31 billion this fiscal.
On the fallout of geo-political crises as well as the resultant logistical challenges, he said there are no disturbances in the focus U.S., Europe and Africa markets that could have a bearing. The Russia-Ukraine war did make a little dent in the exports, but the impact of Russia’s emphasis on localisation is bound to impact more.
Exports to Russia have been negatively growing for last two years. Localisation or Russia’s focus on boosting domestic manufacturing is an issue, he said. “Wars have not made significant impact,” he said, adding exports to the UAE is on the rise as it is emerging as a gateway to different countries.
Pegging the target for FY25 at a record $31 billion, the head of the pharma exporters body under the Commerce Ministry recently cited a shortage of drugs in the key U.S. market amid closure of some units, rising demand in the U.K. and a pickup in the offtake for the African market were factors bound to drive pharma exports.
