Government Tells Exporters to Hunt For New Pharma Export Destinations

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Government has been recommending the exporters from the pharma industry to look for newer markets for the pharma export. This recommendation from the government has come due to the multiplicity of the same drug in Indian market. There are many pharma companies in the country and the competition is intense. Hence there has to be some other way out to increase the production of pharma. Increasing the exports and that too to a newer destination which is untapped but has a potential for the Indian drugs must be contemplated and executed. This is why the government has suggested the drug exporter to hunt for new markets. India has been already exporting half of its total pharma produce.

In the last 5 years, India has consistently beaten China in pharma exports to Latin America. India is 4th largest pharma supplier to US. Now, the Indian exporters of pharma products must focus on rather smaller but emerging and untapped markets to sustain. The ministry of commerce and industry has issued guidelines to export regulation bodies to convey to the drug exporters to think about the diversification of their plans into young markets. It is believed that India will do fairly well in the countries like Myanmar, Peru, Ecuador, Colombia, Turkey, and Venezuela.

In fact, to believe the business news, Myanmar has approached the Indian market for the same. This is an amazing opportunity that looks highly lucrative for the country as the country has expressed an interest in buying the generic drugs from India to cater to the country’s government hospitals. The proposal from Myanmar to buy generic drugs has resulted a very positive response. As many as 60 Indian pharma companies have expressed their inclination in catering to the country’s requirement. To quote some past figures and data, the pharma exports to Myanmar during the period of April to February was about $162 million whereas the exports to the country was $152 million in 2015-16.

As per the recent data shared by the Pharmaceutical Exports Promotion Council (Pharmexcil), the pharmaceutical exports reduced though marginally to $16.4 billion during the FY’17from $16.89 billion during the FY’16. The reason of the fall is quite evident and is known to all. The reasons which was cited for the lack of growth in the pharma exports was a price erosion and the absence of the blockbuster drugs.

The country’s economy had high hopes from Pharmaceutical exports especially after the success of information technology (IT) industry. As per the industry figures, in FY’17, IT services exports was at $160 billion which was 10 times of drugs and pharma and equal to 60% of India’s goods exports. The pharmaceutical exports from India in the year 2016-17 was not very pleasing. It was only $16 billion which was 4.7% low year on year basis and accounted for 5.8%in FY’17 of India’s total goods exports as compared to the 6.4% in the FY’16.

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