According to Ministry of Commerce data, India’s pharmaceutical exports rose by 11% to US $19.2 billion in 2018-19. The rise was mainly driven by higher demand in regions such as North America and Europe. The pharma exports in 2017-18 were US $17.3 billion and US $16.7 billion in the previous fiscal.
Pharma sector Exports
- It accounted for about 6% of the country’s total exports of US $331 billion in 2018-19. It is one of top five sectors in the exports segment.
- Generic drugs: It accounts for largest segment of the Indian pharmaceutical sector, with 75% market share (in terms of revenues). India supplies 20% of global generic medicines in terms of volume, making the country largest provider of generic medicines globally.
- Export Destinations: Over 55% of the country’s exports go to highly regulated markets. North America constitutes about 30% of Indian pharma exports share, followed by Africa (19%) and European Union (16% ) share.
- The other important destinations include South Africa, Russia, Nigeria, Brazil and Germany, where exports are registering growth. Chinese pharma market is also gradually opening up for India’s exports and government is working to push India’s exports there as it holds huge potential.
- Significance of Exports: Higher growth in outbound shipments helps create employment opportunities, earn foreign exchange and boost economic activities.