Pharma exports hit Rs 1.83 lakh crore in 2021-22
Despite global trade interruptions and a reduction in demand for COVID-related drugs, exports in 2021-22 grew at a healthy rate, according to the report. "India is noted for producing 60percent of the world's major vaccinations and 20percent of generic pharmaceuticals." The government claimed, "Indian pharma businesses have established a worldwide imprint, enabled by their competitiveness and high quality."
In terms of volume, India is third, while in terms of value, it is fourteenth. The local pharmaceutical sector is currently worth roughly USD 50 billion. Pharmaceuticals and medications account for 5.92 percent of all worldwide exports.
According to the ministry, formulation and biological agents continue to make up the bulk of the country's overall exports, accounting for 73.31 percent, followed by bulk medicines and drug intermediates. India's top five pharma export markets are South Africa, the United States, Russia, the United Kingdom, and Nigeria.. "Even in the year 2020-21, Indian medications and pharmaceuticals had a rapid rise despite the Covid-19 crisis, attaining a trade of USD 24.4 billion with just an 18% YoY growth," it stated.
Pharma companies may attract long-term investors considering the instability. Investors can make significant returns if we engage at the proper moment due to the growing business size and health becoming an important component of life. Furthermore, being a developing business, many pharmaceutical firms benefit from innovation, scientific discoveries, and technology advancements.
Potential of pharma sector in India
The epidemic of COVID-19 has created the greatest worldwide great recession in 2020. The ensuing economic crisis has resulted in a dramatic drop in global commerce, weaker commodity prices, and tighter external funding conditions, all of which have diverse ramifications for different nations' deposit rates and currencies.
India's worldwide commerce is evolving, as seen by lower disposable income of gemstones and jewelry, industrial equipment, textiles, and related items and rising exports of medications and pharmaceuticals, software, agricultural, and associated sectors.
Pharmaceutical exports, in particular, took advantage of the chance to increase their percentage of overall exports, indicating India's potential to become the "pharmacy of the world," according to the Economic Survey 2020-21.
Specific export shipments of important medications, medicines, testing kits, personal protective equipment ( ppe, and other items were aggressively assisted by customs at the borders as a relief measure for other nations fighting the pandemic. The Indian government contributed some of these supplies.
Because of the pledge to provide COVID-19 vaccine to other nations, India has become the epicenter for its production.
By 2024, the Indian pharmaceutical industry is expected to be worth $65 billion.
The Indian pharmaceutical sector is the world's third biggest by quantity, after China and Italy, and the 14th largest by value.
In ten years, India nearly quadrupled its share of global pharmaceutical exports, from 1.4 percent in 2010 to 2.6 percent in 2019.
In terms of global pharma exports, India ranked 11th in 2019, with Germany, Switzerland, and the United States taking the top three spots.
Since 2009, India has had a steady and long-term Real Part Advantage (RCA) in pharmaceutical exports. In a cross-country comparison, however, India's RCA is ranked 12th.
Furthermore, the Indian pharmaceutical industry has continuously had a high value of trading specialization coefficients (TSC), close to one, from 2014 to 2015. The TSC score ranges from -1 to 1, with a higher TSC rating indicating a country's greater export competitiveness.
The worldwide pharmaceutical market is expected to reach one and half trillion dollars by 2023.. In light of this, India's pharmaceutical business is now valued at $41 billion, with projections of growth reaching $65 billion by 2024 and $120-130 billion before 2030.
India has emerged as a worldwide manufacturing center for generic medications because to its large raw - materials base and trained workforce. Furthermore, outside of the United States, India is the first country to have more than 262 USFDA-compliant pharma factories (including APIs).
Pandemic challenges and opportunity
COVID-19 has offered India with both a chance and a challenge to become the world's pharmacy.
India's pharmaceutical exports totaled $11.1 billion in April-October 2020, up 18% from $9.4 billion in the same period the previous year. As a result, the percentage of medicines exports in India's overall exports has increased from 5.1 percent in April-October 2019 to 7.3 percent in April-October 2020, becoming pharmaceuticals the third most exported commodity.
According to USFDA data, Indian pharmaceutical companies have received over half of all new investigational new drug requests (ANDAs) permits in the last nine months, boosting export growth in the future years.
The epidemic, on the other hand, highlighted the Indian pharmaceutical industry's over-reliance on China for APIs and Key Beginning Material (KSMs).
Furthermore, Indian pharmaceutical exports are too reliant on the United States and generics.
Pharmaceutical products have been designated as being among the ten major industries for launching the Manufacturing Incentives Scheme to improve India's industrial capacity and exports in order to overcome this difficulty.
Its in case of increase announced PLI programmers for bulk pharmaceuticals and medical equipment, which are intended to enhance local manufacture of key KSMs/DIs, APIs, and medical devices.
The pharmaceutical and medical device industries have both responded positively to both of these initiatives.
In addition, a programmer to promote bulk medicine parks and medical equipment parks has been announced.
The Indian pharmaceutical industry must seize the opportunity given by the epidemic. The following elements must be included in a well-defined plan for broad-based industrial development:
Increase the number of markets and product categories. Expanding exports to large and traditionally underserved markets such as China, Japan, Indonesia, Africa, Russia, Commonwealth of Independent States nations, Brazil, and Latin America, as well as pursuing opportunities in relatively new products categories such as biosimilars, gene therapy, and specialty drugs, can help the Indian pharmaceutical industry enter the next phase of growth.
Restructure the present regulatory framework, as well as update and expand capacity at the Central Institute of College Of pharmacy.
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