INDIA —India’s pharmaceutical exports are poised to achieve remarkable growth this fiscal year, projected to hit sales of US$27 billion, driven by strong demand from the United States and other global markets., news agency Reuters has reported.
The forecast comes despite previous concerns over the impact of deaths linked to Indian-made cough syrups in Gambia and Uzbekistan.
Last year, the death of 89 children in Gambia and Uzbekistan due to cough syrups made in India dented the country’s image as the “pharmacy of the world” providing affordable drugs globally.
Indian regulators are also inspecting the faulty drugmakers. The World Health Organisation (WHO) has flagged contamination with unacceptable amounts of diethylene glycol and ethylene glycol, which are toxic to humans when consumed and can prove fatal, in samples taken from a batch of cough syrup made by QP Pharmachem Ltd, based in Punjab.
Udaya Bhaskar, the director general of the Pharmaceuticals Export Promotion Council of India (Pharmexcil), expressed confidence in India’s resilience as a major player in the pharmaceutical industry, asserting that the recent incidents in Gambia and Uzbekistan had not significantly affected the country’s exports.
According to a report by Reuters, Pharmaceutical exports from India had already risen by 3.25% to US$25.4 billion in the year ending March 2023, and it is now anticipated to grow by approximately 6.3% to reach US$27 billion in the current fiscal year.
Despite the dent in India’s pharmaceutical image caused by the unfortunate incidents in Gambia and Uzbekistan, the country’s exports have continued to flourish, especially in the crucial U.S. market.
Sales to the United States, which represents 30% of India’s overall pharma exports, saw a 6.2% rise to US$7.5 billion in the previous fiscal year.
Moreover, India’s overall pharma exports during the April-June quarter recorded an impressive 5% increase, totaling US$6.58 billion.
Bhaskar emphasized that India’s pharmaceutical industry is witnessing robust demand across various therapeutic categories, including central nervous system conditions, cardiovascular treatments, and oncology medications.
To address any concerns regarding Indian drugs, Pharmexcil delegations have made visits to several countries, such as Nigeria, Egypt, and Russia, with the aim of building confidence and transparency in the pharmaceutical supply chain.
While the Gambia has made it mandatory for all Indian drugs to undergo testing before export since July 1, Bhaskar stated that India’s cough syrup exports, including those made using the traditional Indian method of Ayurveda, are only about US$15 million a year, and they have remained largely unaffected.
Other countries have not requested additional tests for Indian drugs after the incidents in Gambia and Uzbekistan, indicating that India’s reputation for producing quality drugs at affordable prices has maintained its appeal worldwide.
However, India’s exports to Russia faced a dip due to the Ukraine war, with sales to the country falling by 4.2% in the last fiscal year to US$573 million.
Bhaskar attributed this decline to factors such as Russia’s dollar shortage, attempts to support its domestic market, and possible reluctance among Indian companies to engage in extensive business with Russia while also trading with the United States.
Nevertheless, India remains optimistic about its overall growth prospects, leveraging its reputation for producing high-quality drugs at competitive prices to remain a key player in the global pharmaceutical arena.
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