Pinning hopes on the recovery of the USA market, a top official of the Pharmaceuticals Export Promotion Council of India (Pharmexcil) said Indian pharma exports may touch $22 bn during the current FY against $19.14 bn in FY 19.
The cumulative growth of Indian exports for the period April-July was 13 per cent. As of June 2019, India’s generic pharmaceutical exports have grown almost 2.7 to 2.8 times faster than the market (global generic market), he said. “Hence, we expect the exports to touch $22 bn in the fiscal 2019-20,” Bhaskar said. “The prices (in USA market) are now stabilised. Even when there was price erosion, our export volumes were growing. That is why the US market has revived,” he said.
Despite price erosion and cartelisation in the USA market, the market there started recovering with 13.72 pc growth in FY ‘19 against negative growth of eight per cent in FY ‘18, Bhaskar said. Exports to North America, Africa and European Union contribute nearly 66 pc of the total Indian pharma exports comprising bulk drugs, finished dosage formulations, Ayush and herbals and surgical, statistics supplied by the Pharmexcil said.
The official said the Japan market was basically not favourable for generic drugs and also doctors in that country were also not willing to promote generic versions.
The registration of drugs in China takes lot of time for Indian companies. There was some policy change last year which was perceived as an opportunity for Indian exporters, he said.
India currently imports APIs (Active Pharmaceutical Ingredient) and other chemicals worth $2.5 bn from China while drug exports to the country was at $230 million.