Pharma Sector Misses $22bn Export Target

Hyderabad, 9 May 2020:

The Covid-19 pandemic hit pharma sector’s ambitions of clocking double-digit exports growth to touch a record $22 billion in financial year 2019-20, as a result of which exports grew only 7.57% to $20.58 billion from $19.13 billion in 2018-19, latest data by apex pharma exports promotion body Pharmexcil show.

The sector, which was galloping at 11.5% cumulative growth rate in first three quarters of FY20 (April-December 2019), registered negative growth of nearly 3% in fourth quarter (Jan-March 2020) due to a steep 23.24% degrowth in March 2020, pulling down total exports growth to 7.57% for the fiscal. While exports grew 11.21% in first quarter, it slid to 8.69% in second quarter and speeded up to 14.64% in third quarter only to stumble in fourth quarter.

According to Pharmexcil, while drug formulations and biologicals, which accounted for almost 72% of exports, showed 9.5% growth in FY2020, those of bulk drugs and drug intermediates, which is second largest exports category, degrew by 0.73%, pulling down overall performance. Meanwhile, vaccines and surgicals recorded 22% and 10.5% growth, respectively.

“India, being dependent on China to an extent of 60-70% of its needs of bulk drugs, suffered disruption in supply chain with outbreak of Covid-19. Our imports of bulk drugs went down significantly in February. Combined with lockdown measures across countries and export restrictions on some products contributed to the situation of downturn in export growth,” Pharmexcil said.

“Usually Indian pharma exports during February and March are quite brisk and to an extent of 22-23% of first 10 months (AprJan) exports. Having seen good pace of exports in first three quarters and price stabilisation in the US, it was estimated that FY20 exports would reach $22 billion mark. However, Covid-19 impacted exports to certain extent and brought down the estimated growth projections, it said.

India exported to 202 destinations in the fiscal, with North America accounting for 34% exports with an over 15% share. US accounted for 32.74% of total exports at $6.7 billion, with Africa coming second at 17% share, followed by Europe with 15% share. The Times Of India