India’s pharmaceutical sector is witnessing remarkable growth, with exports reaching 99% of the FY25 target by October 2024, according to government data.
Strong performance in drug formulations and surgical products has driven this expansion, positioning the country to potentially surpass its annual export goals.
Drug Formulations Lead Export Growth
Data from the Directorate General of Commercial Intelligence and Statistics (DGCIS) shows that drug formulations and biologicals make up 75% of India’s pharmaceutical exports.
These segments have grown by 11%, reflecting increasing global demand for India’s high-quality pharmaceutical products.
A senior industry executive stated, “By October last year, we had already achieved 99% of the target. At this pace, we could exceed expectations by the end of FY25.”
Mixed Performance in Bulk Drug Exports
While drug formulations have experienced steady growth, the bulk drug segment has shown mixed results.
The volume of bulk drug exports has increased, but their overall value has declined. This drop is mainly due to falling prices of Active Pharmaceutical Ingredients (APIs) and intermediates imported from China.
Vaccine Exports Decline, AYUSH Products Gain Momentum
Following the end of the COVID-19 pandemic, demand for vaccines has weakened, resulting in a 9% drop in vaccine exports.
However, exports of AYUSH and herbal products have risen by 13%. This growth can be attributed to higher quality standards; as more Indian pharmaceutical companies obtain Good Manufacturing Practices (GMP) certification.
North American Market Shows Strong Demand
The North American market, particularly the United States, has demonstrated strong demand for Indian pharmaceuticals.
Exports to this region have already reached $6.2 billion, and experts predict they could hit $10 billion by March 2025.
Despite challenges like back orders and drug shortages, Indian pharmaceutical exports to North America have grown by 17%. Industry analysts suggest that without these supply chain disruptions, growth could have reached 25%.
European Market Sees Mixed Trends
Europe has presented a mixed picture for Indian pharmaceutical exports. While the UK recorded a 22% increase and Germany managed 6% growth despite economic challenges, other European countries saw limited expansion. The Netherlands and Belgium, in particular, have shown minimal growth.
From April to October 2024, India’s pharmaceutical exports to Europe reached $3.2 billion, compared to $5.5 billion for the entire previous year.
African Market Faces Slight Decline
Pharmaceutical exports to Africa totalled $4 billion last year but have dipped by 3% in the current period. However, industry experts remain optimistic.
They believe that improved political stability could unlock new opportunities, potentially pushing pharmaceutical exports beyond $10 billion in the coming years.
As reported by english.bharatexpress.com, with strong performance in key markets and continued expansion in high-growth segments, India’s pharmaceutical industry remains on track for another record-breaking year in exports.
