An analysis by the Pharmaceutical Export Promotion Council (Phar-mexcil) early this month showed exports of basic drugs, finished medicines and fine chemicals jumped 30 per cent to Rs 24,661 crore during April-August 2011 as compared to Rs 18,967 crore recorded over the same period the previous year.
The rupee depreciation had some impact on the figures, as revenue growth was 19 per cent in dollar terms.
The US market, which grew 13.6 per cent (in dollar terms) to $1,199 million (Rs 5,902 crore) during this period, continues to be the biggest export destination for Indian drugs, with 23.2 revenue share of the total.
| SWEET PILLS Performance of top 15 drug export destinations Rs /Crore | ||||
| Importing country | April-Aug ‘10 revenue | April-Aug ‘11 | % growth | Market share(%) |
| USA | 4,604.40 | 5,025.30 | 9.1 | 23.2 |
| UK | 673.8 | 850.2 | 26.2 | 3.9 |
| Germany | 603.6 | 769.9 | 27.6 | 3.5 |
| Russia | 525.4 | 723.2 | 37.7 | 3.3 |
| South Africa | 599.8 | 676.8 | 12.8 | 3.1 |
| Brazil | 406.9 | 466.8 | 14.7 | 2.2 |
| Nigeria | 371.8 | 444.4 | 19.5 | 2.0 |
| Netherlands | 345.5 | 416.3 | 20.5 | 1.9 |
| Kenya | 389.8 | 395.7 | 1.5 | 1.8 |
| Vietnam | 257.2 | 353 | 37.2 | 1.6 |
| Canada | 263.9 | 344.2 | 30.4 | 1.6 |
| Turkey | 307 | 341.4 | 11.2 | 1.6 |
| Spain | 208.20 | 325.1 | 56.2 | 1.5 |
| Singapore | 265.30 | 286.50 | 8.0 | 1.3 |
| France | 232.2 | 282.1 | 21.5 | 1.3 |
| Source: Industry | ||||
Exports to most other regions grew. Several African, CIS, South Asian and European countries recorded 39 per cent growth, said P V Appaji, executive director, Pharmexcil.
He said the market access programmes organised by the ministry of commerce in CIS and African countries, and the economic cooperation treaty with Japan, were beginning to show positive results for the pharmaceutical industry.
Exports to Japan, the 26th largest destination for Indian drugs on Sunday, grew 36.7 per cent to $217 million (Rs 1,065 crore) during April-August as compared to 10.9 per cent growth in the same period of 2010. Export revenue from Japan during April-August 2010 was $158 million (Rs 779 crore).
“The UK is the second best destination, with a high growth rate of 29.9 per cent. Exports to Germany, Russia, Vietnam, Canada, Spain, Australia and Japan have grown exceptionally well and are between 30 and 61 per cent,” said Appaji.
Industry experts said the effect was greater due to the low growth in pharma exports in 2010-11. “The impact of global recession hit pharma companies very late. Hence, last year’s export growth was very low, giving rise to a higher growth percentage this year,” a Mumbai-based analyst said.
Appaji agreed the recent slowdown in the European economy may not have yet impacted the sector.
Though the ministry of commerce gets monthly updates on export figures from the Directorate General of Commercial Intelligence and Statistics without much delay, export promotion councils access the data with a lag of four to five months.
