India’s pharmaceutical exports are projected to experience significant growth this fiscal year, reaching sales of $27 billion, almost twice the rate of the previous year. The surge in exports is primarily driven by robust demand from the United States. This optimistic forecast comes despite the past concerns raised by the Indian government over deaths linked to Indian-made cough syrups in other countries.
In particular, last year, several children in Gambia lost their lives, with the World Health Organization (WHO) linking the fatalities to drugs manufactured in India. Additionally, 19 children in Uzbekistan also died due to the consumption of two cough syrups made in India. These incidents raised questions about the quality and safety of Indian pharmaceutical products, potentially impacting India’s image globally.
However, Udaya Bhaskar, the director general of the Pharmaceuticals Export Promotion Council of India (Pharmexcil), asserts that India’s prominence in the pharmaceutical industry makes it a major player, and buyers are not likely to move away due to these isolated incidents in Gambia and Uzbekistan. Bhaskar acknowledges that there might be a slight dent in India’s image, but the growth in exports, especially to the US market, remains robust.
Indian pharma exports had already risen by 3.25 percent to $25.4 billion in the previous fiscal year (up to March 31). The current fiscal year is expected to witness further growth of about 6.3 percent, reaching $27 billion in exports. The US market is India’s largest importer, accounting for approximately 30 percent of overall pharma exports, and sales to the US rose by 6.2 percent to $7.5 billion in the previous fiscal year.
To address concerns and maintain its market reputation, delegations from Pharmexcil have visited countries like Nigeria, Egypt, and Russia to clarify any doubts about the quality of Indian drugs. Bhaskar emphasizes that India is known for producing quality drugs at affordable prices, which has been a significant advantage for the country over the past two decades.
However, India’s exports to Russia have faced challenges due to the Ukraine-Russia conflict, resulting in a 4.2 percent decline in sales to Russia in the previous fiscal year, falling to $573 million. This decline has caused Russia to drop to the seventh position among India’s biggest pharma importers. The ongoing situation in Russia, including a dollar shortage and efforts to boost the domestic market, has contributed to this decline in pharma exports to the country.
Overall, despite some setbacks, India’s pharmaceutical exports are projected to maintain their growth trajectory, underlining the country’s crucial role in the global pharmaceutical industry. The cost advantage of manufacturing drugs in India compared to Europe and the US further strengthens India’s position as a major pharmaceutical exporter.