India forecasts accelerated growth in pharmaceutical exports

INDIA – India’s pharmaceutical export sales are anticipated to accelerate, with an expected growth of nearly 11% this fiscal year, up from approximately 10% in the 2023. 

This projection, revealed by a government-backed trade body on Thursday, underscores the nation’s resilience in the global pharma market despite concerns surrounding product quality in certain regions.

According to the Pharmaceuticals Export Promotion Council of India (Pharmexcil), export revenues are poised to surpass US$31 billion by the end of the fiscal year, a significant uptick from the nearly US$28 billion recorded in the previous fiscal period. 

Key drivers of this growth include robust performance in crucial markets such as the United States and the United Kingdom.

Udaya Bhaskar, the director general of Pharmexcil, highlighted the pivotal role of these markets, particularly the U.S., which accounts for about 30% of India’s annual pharmaceutical exports.

The U.S. market witnessed a substantial 16% increase in the previous fiscal year, signaling sustained demand for India’s competitively priced drugs.

Bhaskar emphasized that factors such as drug shortages and the rising prevalence of lifestyle diseases like diabetes, hypertension, and depression are fueling demand for India’s pharmaceutical offerings. 

This sentiment aligns with India’s Ratings and Research assessment, which predicts that the U.S. market will continue to drive revenue growth for Indian drugmakers in the current fiscal year.

Beyond the U.S., Bhaskar sees promising opportunities in the U.K. market, particularly in the post-Brexit landscape, where drug costs have escalated, creating a demand for more affordable alternatives. 

He noted a significant shift in the market dynamics post-COVID-19, with European drugs becoming pricier, presenting an opening for India to penetrate the U.K. market further.

However, Bhaskar also acknowledged the need for India to move beyond generic drug manufacturing to solidify its position in the global pharmaceutical industry. 

While recognizing the challenges ahead, including insufficient industry investment and inadequate government support, he stressed the importance of innovation and diversification to propel India’s pharmaceutical sector forward.

As India navigates the complexities of the global pharmaceutical landscape, the projected growth in export sales serves as a testament to the nation’s resilience and potential for further expansion in the years to come. 

Focusing on addressing industry challenges and capitalizing on emerging market opportunities, India aims to solidify its position as a powerhouse in the global pharmaceutical arena.

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