New Delhi : Exports of drugs and pharmaceuticals for the month of July has reported a decline of 1.05 per cent, while the four month during April to July cumulatively shown a growth of 5.63 per cent, according to the latest data from the Ministry of Commerce.
During the month of July, 2022, the pharma export was at $2.12 billion as compared to $2.15 billion during the same month of last year. The exports for the four months from April to July, 2022, stood at $8.38 billion as compared to $7.93 billion reported during the same period of last year. It may be noted that the domestic market has also seen a decline of 2 per cent in the first quarter of the current fiscal year, according to IQVIA quarterly insights released recently.
It may be noted that the exports have seen an 8.05 per cent growth during the first quarter of the fiscal year, from April to June, 2022, following the trend of growth reported in the Latin American and ASEAN countries market in the previous year.
Imports of medicinal and pharmaceutical products, on the other hand, continued to report a decline in July, with the month registering a decline of 10.71 per cent in imports. The imports for July, 2022 was at $710.12 million as compared to $795.31 million during the same month of previous year.
Imports during the four months ended July reported an almost 20 per cent drop to $2.83 billion as compared to $3.54 billion during the same four months of the previous fiscal year.
It may be noted that 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. The growth was achieved despite several issues the global industry faced during the year, said industry experts.
The government was targeting an export of $29 billion during the fiscal year 2021-22 but the market conditions were not in tune to support that growth, said experts.
The Central government has earlier 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 Narendra Modi for the feat. The exports grew by almost $10 billion in eight years.
It said that 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 percent of the world’s vaccines and 20% of generic medicines coming from India.
The share of pharmaceuticals 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, said the government earlier.
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, it added.
In the year 2020-21, Indian drugs and pharmaceuticals had registered a sharp growth amid the Covid-19 despair, achieving an export of $24.4 billion with a YoY growth of 18%.