Exports of drugs and pharmaceuticals from India for the first time crossed the Rs 10,000-crore mark in 2002-03 and grossed at Rs.11,925 crore. The export figures recorded in 2002-03 represents a 21 percent growth over the exports achieved in the previous year. As against this, the growth rate in drugs and pharmaceuticals during 2001-02 was just 11.2 percent. One of the main reasons for the doubling of the growth rate is the surge in exports to regulated markets like the US, Germany, the UK, Russia, Mexico and Spain. The US continues to be the most preferred market in 2002-03 for Indian exporters with exports to that country touching Rs 2023 crore, registering a 25 percent growth over the previous year. Germany is the second leading importer of drugs and pharmaceuticals from India with its total import at Rs 727 crore during 2002-03.Russia and China were other two major importers of drugs and pharmaceuticals during the year under review. Amongst the companies, Ranbaxy, Dr Reddy's Labs, Cadila Healthcare, Cipla, Hetero Drugs, Wockhardt and J B Chemicals stand out amongst the ten top exporters. Most of these companies have 50 percent or more of their total turnovers coming from exports. In the case of Ranbaxy, exports income account well above 60 percent of its turnover. The companies like Aurobindo, Orchid Chemicals and Shasun Chemicals are some of other significant exporters in the years to come. One important reason for this export surge in drugs and pharmaceuticals is the all-round acceptability of Indian products in the US and the other developed markets of the West. With increasing number of medium scale drug units adopting stringent manufacturing and product quality standards, the image of Indian pharmaceutical industry in the international markets has undergone a major change. Increasing participation of Indian pharmaceutical companies and allied industries in events like CPHI and the expected enforcement of GMP from January 2004 should give a further lift to this new image of Indian pharmaceutical industry in the years to come. Judging by the trend so far, export of drugs and pharmaceuticals is bound to achieve a 25 percent growth in the current year as well. However, what is disturbing the exporters in the current year is the steady weakening of the dollar against rupee. It is possible that the rupee will continue to gain in the coming months as well. If that continues in the remaining part of the current year, India's realization of foreign exchange earnings is going to be 10 to 15 percent lower from pharmaceutical exports just because of the rupee value erosion. This should be a matter of concern for exporters and the government. Some incentives like import registration exemption for bulk drugs for export production and concessions on manufacturing and trading license fee are already available to the exporters. But that alone will be enough to keep up the country's export tempo.