As per the latest commodity-wise data available from DGCIS , India’s bulk drug exports occupy a share of 40.48 per cent of the total exports of drugs, pharmaceuticals & fine chemicals during 2008-09 growing at a CAGR of 19.69 per cent over the five period 2004-05 to 2008-09. Comparatively formulations occupied a share of 58.04 per cent growing at a CAGR of 24.96 per cent during the same period. During 2008-09, the country had a positive trade balance of over US$1.29 billion,according to Dr. P.V. Appaji,Executive Director, Pharmaceuticals Export Promotion Council ( Pharmexcil).The council estimates that India’s exports of bulk drugs would continue to grow in the coming years also, he added.
Asia (along with CIS region) remains top export destination of Indian bulk drugs with a share of 31.84 per cent followd by EU with 28.58 per cent , North America. 21.34 per cent , LAC (9.11 per cent ) and Africa (5.55 per cent ). The country exports very little to Oceania region.
The top export destinations during 2008-09 are USA with a share of 17.76 per cent followed by Russia (3.79 per cent ), Germany (3.78 per cent ), UK, Brazil, South Africa, Canada, Nigeria and Ukraine in that order. Exports of bulk drugs to Austria during 2008-09 have shown a sudden spurt placing it among top 10 export destinations. However, growth-wise and value-wise the following countries have emerged as most important destinations during the last 5 years:
However, exports to Indonesia & Hong Kong remain of concern.
Currently, the industry is increasingly becoming dependent on China for bulk drugs which threatens of competencies as low cost manufacturer of formulations.
The country has to strengthen itself in fermentation, biological & biotech products and foray into complex molecules. The unbridled internal competition is threatening the viability of our industry, he added
India is currently sourcing over 62 per cent of its API imports from China increasing from 42 per cent in 2004-05. China through its systematic policies destroyed some of the key sectors of India such as fermentation & biotech industry. There is an urgent need for revival of the same.
There is an urgent need to strengthen various segments in Indian API industry to reduce the dependency. The development of NIPs and R&D need further support of the Government, he said.