Pharma export registers decline for third consecutive month

Exports of drugs and pharmaceuticals have registered a decline for the third consecutive month in November, this year, with a seven per cent decline compared to the same month of last year. Imports continued to register a growth during the period. The decline is in the backdrop of a once in eight year increase in export during the last year along with impact of various factors including the manifold increase in freight rates and others.

According to the quick estimates of India’s foreign trade registered for the month of November, 2021, released by the Ministry of Commerce and Industry, the exports of drugs and pharmaceuticals was $1.83 billion in November, as against $1.96 billion during the same month of last year, registering a decline of 7.03 per cent.

For the eight months from April to November, 2021, however, the exports have been at $15.866 billion, close to the $15.868 billion exports registered during the same period of last year.

Imports of medicinal and pharmaceutical products, however, registered a 37.54 per cent in November, 2021, at $735.7 million as compared to $534.89 million during the same month of the year 2020. This is against the 8.61 per cent increase registered in October, 2021, at $649.48 million as compared to $597.99 million in October, 2020. Compared to the imports in October, this year, the imports in November have grown 13.3 per cent.

For the eight month from April, 2021, imports have registered a 33.37 per cent growth to $6.16 billion as compared to $4.62 billion during the same period of fiscal year 2020-21. The import figures for the month of November are provisional and various category imports include re-imports also, said the ministry.

The decline is at a time when India’s overall exports (Merchandise and Services combined) in November 2021 registered a growth to $50.36 billion, exhibiting a positive growth of 22.80 per cent over the same period last year and a positive growth of 15.53 per cent over November 2019.

According to industry experts, the decline in growth has to be considered against the exceptional growth of 18.19 per cent registered in the year 2020-21, to $24.4 billion, which was the kind of growth that happened after eight years. The increase in freight cost and other factors have also impacted exports during the current year.

Experts also opined that review of exports on a monthly basis may not give a clear picture of the growth in the sector, and the eight month exports till November was also close to what it was registered during last year. However, this would pose a challenge for the industry to achieve the target of $29 billion exports during the current fiscal year, they said.

Pharmaceutical exports have registered growth in the last few years, following a 2.92 per cent growth it registered for the year 2017-18, at $17.28 billion. The year 2018-19 has seen a growth of 10.72 per cent to $19.13 billion compared to the previous year, 2019-20 with a growth of 7.57 per cent to $20.58 billion, before hitting an eight year high or 18.19 per cent growth to $24.47 billion in the year 2020-21. Phamabiz