Pharmaceuticalexports grew by 5 per cent in the first half of the current fiscal year ending September 30, 2023, at $13,361 million compared to $12,723 million in the corresponding period of the previous financial year.

“Overall exports in September grew by 9 per cent that is the second highest monthly growth after April, which recorded 9.43 per cent. This is a positive sign for the overall growth in pharmaceutical exports,” R Uday Bhaskar, Director General, Pharmaceutical Export Promotion Council (Pharmexcil), told businessline on Sunday. 

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Growth drivers

The growth was driven by greater demand, increase in export scale up of mid-level pharma companies in India and clearance of pending site inspections by the US Food and Drug Administration (USFDA), Bhaskar said. 

The US, the UK and Brazil were the top 3 destinations for Indian pharma exports that are at $4142 million, $370 million and $336 million, respectively. As per the data, all the three top regions such as NAFTA, EU and Africa LAC are showing healthy growth.

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“At this run rate, overall exports in the current financial year of FY24 are likely to surpass the $27-billion mark,’‘ the Pharmexcil DG pointed out. “Due to the Israel-Hamas war, drug shortages might increase, and India’s exporters may get some additional benefits which can result in higher quantum of exports over next 2-3 months, he added. 

Due to the war — times shortage for drugs, Indian companies were already asked to fill in the gap as a measure of emergency even without market authorisations that might augur well for India’s exports., according to Bhaskar.

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In 2022-23, pharma exports to Israel grew 40 per cent at $92 million, compared to $60 million in the previous year. The Compounded Annual Growth Rate (CAGR) for the last five years is 22 per cent, as per Pharmexcil data. 

Pharmaceutical exports have registered a 3.25 per cent growth in FY23 at $25.3 billion. In 2021-22, the exports growth was almost flat at 0.71 per cent at $24.62 billion.