Pharma exports likely to touch all-time high of $27 bn in FY23 riding on EU

Better figure expected despite global headwinds; India has so far exported pharma products worth $16.57 bn during April-November this year

India’s pharma exports are likely to touch an all-time high of $27 billion in FY23, felt a senior official of the Pharmaceutical Exports Promotion Council (Pharmexcil).

In FY22 India had exported pharmaceutical products worth $24.62 billion. So far, India has exported pharma products worth $16.57 bn during April-November this year.

Exports have grown by 4.3 per cent so far this year, over the same period (April to November) in FY22. However, in November, there was a sharp rise in exports of 12 per cent over November last year. On a month-on-month basis too, exports have grown 5.4 per cent. (see chart)

Uday Bhaskar, director general of Pharmexcil pointed out that a growth of 4.3 per cent during the April-November period of the fiscal is good, considering the global macro-economic situation.

“The coming months will see better growth rates. Traditionally, January-March is one of the better quarters for pharma exports. After the holiday season in December, we expect 7-8 per cent growth every month for the next three months,” Bhaskar said.

He therefore felt India would be able to clock total exports worth $27 billion or so this fiscal, up from last fiscal’s $24.6 billion.

Among all regions, Europe has shown the maximum growth during this fiscal at 14.19 per cent. The US, Canada and Mexico (NAFTA countries), Europe and Africa together account for 67.5 per cent of India’s overall exports. West Asia and North-Africa (WANA) grew the second highest at 12.68 per cent.

Last year, Europe and the US together had a 51 per cent share of exports, and this year these two regions may register a higher share of the overall pie. This is primarily because exports to Europe have done well.

Analysts agree. Kunal Randeria, analyst with Nuvama Research said European demand is picking up now, and the inventory situation is easing as well.

Bhaskar says Africa remains a concern as far as exports go.

Exports to Africa have shrunk by 1.6 per cent, Pharmexcil data showed. South Asia has contracted the most, by 15 per cent between April and November.

Bhaskar said a lot of purchases in Africa were happening through NGOs, which were Covid-19 focused, and were procuring medicines for infectious diseases. “This has slowed down to an extent, and also the rising dollar is hurting many economies in the African region,” he added.

A Gujarat-based pharmaceutical exporter agreed: “Nigeria is one of our top markets in Africa, and since their currency has depreciated vis-a-vis the dollar, they have reduced their imports a bit,” he said.