The Latin American Countries will soon emerge as a major destination for drug exports from India, noted Dr PV Appaji, executive director of Pharmexcil.
India exported its pharmaceuticals globally worth US$ 3591.89 million in the year 2004-05 with a growth rate of 12.47 per cent. Of this, Latin America accounted for about US$271.85 million with a growth rate of 5.39 per cent. The share of exports to Latin American Countries (LAC) was 7.57 per cent for the period. Brazil, Mexico, Argentina, Colombia, Venezuela are top five export markets for Indian companies in the LAC. Indian pharma exports to Brazil accounted US$ 102.68 million, Mexico about US$ 57.42 million, Argentina US$ 23.63 million, Colombia US$ 22.72 million and Venezuela about US$ 15.72 million during 2004-05, Dr PV Appaji informed Pharmabiz.
Countries such as Nicaragua, Panama, Peru and Chile are proving as high growth markets for Indian pharma companies with growth rate of 130.95 per cent, 106.32 per cent, 60.70 per cent and 51.12 per cent respectively.
Now Indian companies export bulk drugs and formulations to most of the Latin American Countries. The LAC market is characterised by huge range of products, strict delivery schedule, quality and price monitoring, aggressive marketing of low priced products from new entrants such as Korea and China.
He noted, under the preferential trade agreement (PTA), India and Mercosur (southern common markets including Argentina, Brazil, Paraguay and Uruguay) have offered fixed tariff preferences. Central Government has entered into economic cooperation treaty with the LAC countries. Various institutional initiatives have been taken by the Government of India which includes setting up of Indo-Argentina Joint Commission, Indo-Mexican Joint Commission, Indo-Brazilian Commercial Council, Indo-Cuban Joint Commission etc.
Market Development Assistance (MDA) is being provided to individual exporters targeting Latin American Countries. Pharmexcil is keen to improve Indian pharma exports to the region in the coming years, seeing the potential the countries offer, Dr Appaji added.
Pharmexcil is taking a delegation of 25 members to Chile to participate in a meet jointly organised by the Government of Chile and the Embassy of India at Santiago between June 28 and 30, 2005. The meet is organised to throw open a new USD one billion pharma market, following a recent Chilean Government decision to meet healthcare needs of senior citizens in that country.
The Pharmexcil has also organized a meet at New Delhi on June 10, 2005 where the Councils members could interact with Ambassadors / officials from 11 Latin American Countries and explore new growth markets.