Pharma Exports Can Cross $20-bn by 2020: Pharmexcil

India’s pharmaceutical exports can cross $20-bn by 2020 even though the value of shipments to countries including the US have been hit, according to Mr. Ravi Uday Bhaskar, Director General of the Pharmaceuticals Export Promotion Council (Pharmexcil). “This is due to increasing interest from neighbouring countries, including China, on which India has been heavily dependent for crucial ingredients for its formulations,” he said in an interview with a leading financial newspaper.

However, the local industry needs to focus on strengthening its active pharmaceutical ingredient (API) business, in addition to manufacturing generic formulations to achieve the export goal, he said.

India’s pharma exports grew 2.91% to $17.27-bn 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 Mr. 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,” he said and noted that this would be an opportunity for India to strengthen its API business.

Exports to China

China is a major supplier of APIs globally, he said. At the same time, some Chinese formulation makers are showing increasing interest in importing APIs from India. “They wanted to have APIs from Indian companies, which have a very strong international accreditation,” he said, adding that this was a significant development for India.

India’s pharma exports to China increased 44% to $182.67-mn in 2017-18, latest data from the council shows. A majority of these exports to China were APIs, said Mr. Bhaskar, adding that the increase in exports, though small, was because the country was upgrading some of its manufacturing facilities.

Mr. Bhaskar added that he was “optimistic” about the growth in India’s pharma exports for 2018-19 due to “positive trends” in regions such as Latin America and the Commonwealth of Independent States.

India’s pharma exports to the US and North America, which contributed to over 30% of the country’s outbound shipments, dropped in 2017-18, he said. The value of exports to the US fell 8.35% to $5,114.70-mn due to factors like price erosion and consolidation and cartelisation of major drug distributors in the region, which has given them “tremendous negotiating power to bargain,” he said.