Indian Pharma Exports: Achievements, Opportunities, and Challenges Explored at Hyderabad Meeting

Hyderabad: On June 27, 2024, at the Taj Krishna in Hyderabad, Mr. Udaya Bhaskar, Director General of Pharmexcil, addressed a gathering to discuss the trajectory and future prospects of Indian pharmaceutical exports. From a modest USD 3.9 billion in 2004-05, Indian pharma exports surged to USD 27.85 billion in 2023-24, demonstrating a remarkable CAGR of 11%.

India’s significant role during the COVID-19 pandemic highlighted its status as a global powerhouse, developing and distributing vaccines to over 100 countries. According to an EY FICCI report, the Indian pharmaceutical market is projected to reach USD 130 billion by 2030, driven by innovative therapies.

In 2023-24, India’s pharma exports grew by 9.66%, reaching USD 27.85 billion. Formulations and biologicals led the way, accounting for 73.75% of exports at USD 20.54 billion. Bulk drugs and drug intermediates saw a marginal growth of 1.60%, valued at USD 4.76 billion. Vaccine exports grew significantly by 16.75%, totaling USD 1.19 billion.

Regionally, NAFTA was the largest market, with exports reaching USD 9.58 billion, a 14.44% growth. Europe followed with USD 5.58 billion in exports, marking a 10.93% increase. Africa rebounded from a negative trend, recording an 8.18% growth with exports worth USD 3.95 billion. However, CIS exports saw a decline of 3.85%.

The U.S. remains India’s top export market, accounting for 31.35% of exports, valued at USD 8.73 billion, with a growth of 15.66%. The UK emerged as the second-largest destination, with exports valued at USD 784 million, growing by 21.12%.

Despite the growth, the industry faces challenges such as geopolitical tensions, supply chain issues, and increased scrutiny from global regulatory agencies. Pharmexcil’s strategic focus includes enhancing quality management and leveraging schemes like the PLI to reduce import dependence.

The upcoming 10th edition of iPHEX, scheduled for August 28-30, 2024, in Greater Noida, will further showcase India’s pharmaceutical capabilities, with over 440 exporters and 500 overseas delegates expected to attend.

As the Indian pharmaceutical industry continues to evolve, its commitment to innovation and quality will be crucial in navigating the dynamic global landscape.