Pharma exports register 3.9 percent growth in April

New Delhi, May 9, 2022:

Exports of pharmaceuticals for the first month of the new fiscal year 2022-23 has reported a four per cent growth compared to the same month last year.

According to the preliminary data of India's merchandise trade for the month of April 2022, pharma export has grown 3.9 per cent to $1.97 billion during the month, as compared to $1.89 billion reported during the same month of last year.

This is at a time when the overall exports during the month jumped 24.22%, highest ever exports in April, buoyed by the growth on petroleum products, electronic goods and chemicals, according to the ministry of commerce and industry. Pharma exports contributed 5.15 per cent of the total exports from the top 10 major commodity group.

When compared to the exports during March, the April exports were lower.

According to the preliminary estimates of the Ministry in April, Exports during the month of March, 2022, reported a 4.2 per cent growth to $2.39 billion as compared to $2.29 billion in the same period of previous fiscal year.

The exports of drugs and pharmaceuticals during the fiscal year 2021-22 witnessed a growth of 0.66 per cent at $24.6 billion as compared to $24.44 billion during the previous fiscal year, according to the preliminary estimates of the department of commerce. The Government was targeting an export of $29 billion during the fiscal, but the market conditions were not in tune to support that growth, said experts.

The Central government has recently said that the Indian pharma exports witnessed a growth of 103 per cent since 2013-14, from Rs. 90, 415 crore in 2013-14 to Rs. 1,83,422 crore in 2021-22. The exports achieved in 2021-22 is the Pharma Sector’ best export performance ever, it claimed.

Union minister of commerce and industry, consumer affairs, food and public distribution and textiles, Piyush Goyal highlighted the achievement in his Twitter account and praised Prime Minister Narendr Modi for the feat. The exports grew by almost $10 billion in eight years.

Building on the outstanding performance in the previous FY 2020-21, Indian pharma exports once again registered a healthy performance in 2021-22, said a press release issued by the government. The pharma exports in 2021-22 sustained a positive growth despite the global trade disruptions and drop in demand for Covid related medicines. The trade balance continues to be in India’s favour, with a surplus of $15.18 billion, it said.

Indian pharma companies, enabled by their price competitiveness and good quality, have made global mark, with 60 per cent of the world’s vaccines and 20% of generic medicines coming from India.

"Behind India’s pharma success story is our world class manufacturing excellence, robust infrastructure, cost-competitiveness, trained human capital and innovation. The current market size of the Indian pharmaceutical industry is around $ 50 billion," it added.

The share of pharmaceutical and drugs in India's global exports is 5.92%. Formulations and biologicals continue to account for a major share of 73.31% in total exports, followed by Bulk drugs and drug intermediates with exports of $4.44 billion. India’s top 5 pharma export destinations are US, UK, South Africa, Russia and Nigeria.

It is also noteworthy that around 55 per cent of its pharma exports cater to highly regulated markets. Indian pharma companies have a substantial share in the prescription market in the US and EU. The largest number of US Food and Drug Administration approved plants outside the US is in India.

In the year, 2020-21, Indian drugs and pharmaceuticals had registered a sharp growth amid the Covid despair, achieving an export of US$ 24.4 billion with a YoY growth of 18%. PharmaBiz