Pharma exports can cross $20 bn by 2020
pharma exports can cross $20 billion by 2020 even though the value of shipments to countries, including the US, have been hit. According to an interview in ET, Bhaskar said that, this is due to increasing interest from neighbouring countries, including China, on which India has been heavily dependent for crucial ingredients for its formulations, Ravi Uday
Bhaskar, Director General of the
Pharma Export Promotion Council.
However, the local industry needs to focus on strengthening its active pharmaceutical ingredient (API) business in addition to manufacturing generic formulations to achieve this goal. An API is that part of a drug that produces its therapeutic effects.
India’s pharma exports grew 2.91% to $17.27 billion in 2017-18, according to the council. Several countries are considering policies to reduce their healthcare spending and pharmaceuticals contribute a “major share” of these expenses, according to Bhaskar. “If the governments are moving in that direction they need to purchase generics from India. The entire world is looking for alternative manufacturers of APIs as well as formulations.” This would be an opportunity for India to strengthen its API business, he said.
India’s pharma exports to China increased 44% to $182.67 million in 2017-18, latest data from the council shows. A majority of these exports to China were APIs, said Bhaskar, adding that the increase in exports, though small, was because the country was upgrading some of its manufacturing facilities. However, India’s pharma exports to the US and North America, which contribute to over 30% of the country’s outbound shipments, dropped in 2017-18, he said.