India’s pharmaceuticals exports reaches $9.35 bn growing @ 29% for the year 2008-09

Indian pharma companies export drug products to more than 150 countries

India’s exports of drugs, pharmaceuticals and fine chemicals for the year 2008-09 stood at Rs.39,538 crore (around US $ 9.35 billion), registering a growth of about 29% over the last year, according to Anand Sharma, Union Minister of Commerce and Industry, government of India.

The exports of drugs, pharmaceuticals & fine chemicals of India have grown at a compounded annual growth rate of 17.8% during the five-year period 2003-04 to 2007-08”, Mr sharma said.

“In recent times the Indian pharmaceutical sector has emerged as one of the major contributors to Indian exports with export earnings rising from a negligible amount in early 1990s to Rs.29,139.57 crore (US $ 7.24 bn) by 2007-08,” stated Mr Sharma while addressing the Indo-Africa Pharma Business Meet in Hyderabad.

Indian companies have established their lead in most of the markets including Africa in generic medicines sector making all sort of formulations including tablets, capsules, injectables and infusion, oral solutions, ointments and creams.

Indian government has provided several benefits in the Foreign Trade Policy announced recently recognizing the contribution of Indian pharmaceutical industry in exports of the country, he said.

The government has made provisions for additional resources to be made available under the Market Development Assistance Scheme and Market Access Initiative Scheme. PHARMEXCIL, the Export Promotion Council has been provided funds for Brand Promotion of Indian pharmaceutical industry in Africa under MAI Scheme.

The incentives offered to exporters under Focus Market Scheme and Focus Product Scheme have been raised from 2.5% to 3% and 1.25% to 2% respectively.

Similarly, pharmaceutical has been included in Market linked Focus Product Scheme enabling exports to Algeria, Egypt, Kenya, Nigeria, South Africa and Tanzania eligible for benefit under this Scheme.

The government has introduced `zero duty’ under EPCG Scheme for aiding technological upgradation for pharma sector also.

However, the growing export of India in African countries has started causing concern in multinational companies who have started a campaign as Indian generic medicines being counterfeit and substandard.

In April, Pharmaceuticals Exports Promotion Council (PHARMEXCIL) has reported that the pharmaceutical exports from India for the first nine months of the fiscal 2008-09 have peaked upto $1.2 billion, despite a slowdown in overseas trade across all industries owing to recessional fears.

Total exports in pharmaceutical products from India in December 2008 surged by 46.3 per cent to 1.01 billion dollars from 609 million dollars in the same month of the previous fiscal, according to PHARMEXCIL – separate governing body to oversee pharma exports under the Ministry of Commerce & Industry.

The overseas sales in the first nine months of 2008-09 went up by 21 per cent to 8.44 billion dollars against 6.97 billion dollars in 2007-08.

During the ten months period from April 2008 to Jan 2009, India’s pharmaceutical products exports registered over 30% growth notwithstanding odds like slowing growth in leading pharma markets worldwide and fluctuating currencies.

India’s exports of pharmaceutical products touched Rs.31,607.84 crores during April 08 – January 09, growing at 30.7%, compared to Rs 24,175.9 crores for the same period during previous year, according to Pharmexcil.

Indian pharma companies export their produces to more than 150 countries across the world including the US, Europe, South Africa, Brazil and Canada.