HYDERABAD: New markets are expected to drive the growth of Indian pharma exports, in spite of headwinds in the traditional US market.
“For the first time, Indian pharma exports grew to $17.26 billion in financial year 2017-18. In spite of eight per cent negative growth from the US market, pharma exports in India grew by 2.92 per cent last financial year. This was possible due to new markets opening up for our pharma companies. Africa, China, and Commonwealth of Independent States markets are the potential new markets that will present growth opportunities.
Therefore, even if negative growth continues in the US market, Indian pharma companies need not worry, they only have to explore opportunities in these potential markets,” said Uday Bhaskar Reddy, Director General of Pharmaceuticals Export Promotion Council, speaking at a pharma expo in Hyderabad.
Traditionally, the US has been the top importer for Indian pharma exporters, but price erosion in North American market and regulatory hurdles have led to negative growth from this region.
“Indian pharma industry is self-driven and things are moving in the positive direction in spite of negative growth from the US market. We always worried that if negative growth is witnessed in the US market, our overall exports will also see a dip. But it was proved in FY18 that even if negative trend continues in the US market, Indian pharma exports will rise,” Reddy said.
“There is a lot of potential in other markets. For instance, pharma exports to China grew by 37 per cent, from $137 million to $200 million last fiscal. The value may be less, but it points to new doors opening up in other territories. Chinese government has even imposed zero duty on 103 anti-cancer drugs, which will be beneficial for the Indian pharma industry. There was 18 per cent growth in pharma exports in the first quarter of FY19, which is very positive for the Indian pharma sector,” he added.