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  3. India’s pharma exports to go up $22-25 billion in 5 years

India’s pharma exports to go up $22-25 billion in 5 years

17 Aug 2011 Evaluate

The Commerce Ministry is aiming to increase the Pharmaceutical exports by three times in coming three to five years. Currently, India’s pharma export is around $9 billion. The commerce secretary Rahul Khullar on August 16 said “With many more drugs going off-patent, pharmaceutical exports from the country will go up $22-25 billion in three-five years from $9 billion now.”

The demand for Indian drugs in international market is expected to increase with the rise in medical expenses of the developed counties. The commerce secretary said ‘the increasing medical budgets of developed economies will mean that they will have to depend more on generics and there lies the opportunity for Indian drug manufacturers provided we adopt the trace and track system that will help us to stand by our certificate.’
 
Currently, India exports its drugs to 220 counties. The formulations accounts for 56% of India’s total drug exports, it is followed by the bulk drugs at 42% and herbals and Ayurveda at 2% each. Country wise United States is the largest market for Indian drugs. It accounts for 22% of exports followed by Africa which accounts for 16% and the Commonwealth of Independent States (CIS) which accounts for 8%.

The drug exports of India is also likely to get boost from India-Japan Free Trade Agreement in coming few year. Japan is the world’s second largest market after United States, and with the Japanese government encouraging use of generics, it is expected that the Japanese market would account for minimum 5% of Indian drug exports within the next three to four years.

The focus on boosting India’s drug exports is the part of ministry’s strategy paper on doubling India’s exports to more than $500 billion by the 2014, with a shift from traditional sector such as handicrafts and leather to non-traditional sectors, high-value products like engineering goods and pharmaceuticals. 

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