The pharmaceutical exports from India have posted a growth of 9.3 per cent during the first half of 2005-06 to Rs 8567 crore from Rs 7835 crore during the first half of 2004-05 and is expected to post a growth of 25-30% during the current financial year. However, exports to the US have declined by 1.5% in value terms so far in 2005-06.
Disclosing the details to Pharmabiz, D.B. Mody, chairman, Pharmexcil said that considering the present trend, pharma exports are likely to post 30% growth during the current financial year, unless unforeseen hiccups occur.
US remained the highest contributor in the Indian pharma exports. However, the exports to the US declined by 1.5 per cent to Rs 1203 crore in the first half of 2005-06 from Rs 1222 crore in the similar period of last year basically due to enhanced competition in generics and stringent approval procedure. The contribution of total exports to the US worked out to 14 per cent as against 15.6 per cent in the last period. Exports to the US during the period July-Sept 2005 increased by 7.2 per cent to Rs 188 crore.
Germany is the second largest market for Indian pharma companies and exports to Germany increased by 5.9 per cent to Rs 451 crore from Rs 426 crore in the corresponding period of last year. However, contribution to German exports in total size of the Indian pharma exports declined slightly to 5.3 per cent from 5.4 per cent. Russia remained at third spot for Indian exports. Exports to Russia went up sharply by 32.8 per cent to Rs 403 crore from Rs 304 crore with an increased contribution to 4.7 per cent from 3.9 per cent in overall figure of pharma exports. Exports to UK also has taken a quantum jump to 39.2 per cent and reached Rs 342 crore from Rs 246 crore.
The Indian pharmaceutical segment exports its products to almost all countries. The export to 25 countries, with exports worth above Rs 100 crore each, increased by 11.4 per cent to Rs 5681 crore during the April-September 2005 period as against Rs 5097 crore in the corresponding period of last year. Among the top 25 countries, exports to Turkey increased by 78.4 per cent to Rs 186 crore from Rs 104 crore in the last period. This was followed by China (57.1 per cent), Israel (51.2 per cent), Singapore (49 per cent) and South Africa (48.4per cent).
Several Indian companies have set up their facilities, joint ventures and subsidiaries in Brazil and Indian drug exports to Brazil touched Rs 267 crore from Rs 223 crore in the corresponding period of last year. Export contribution from Brazil worked out to 3.1 per cent as against 2.8 per cent in the last period.
Besides the US, Indian pharma exports to countries like Nigeria, Mexico, Spain, Ukraine, Vietnam, Ireland and Nepal declined during the first half of 2005-06. Export to Nigeria declined by 17.2 per cent to Rs 189 crore from Rs 229 crore.
ASSOCHEM also had predicted that the Indian pharmaceutical exports will have potential to grow around 18% by 2007-08 to take its total export volume to about Rs 30,000 crore from the exports volumes which exceeded Rs 16,000 crore during 2004-05.
Click here to view India's drug exports to top 25 countries in first half of 2005-06