Pharma SMEs will overcome short-term disruptions: CRISIL SME Tracker

The Indian pharmaceuticals industry is very fragmented, with small and medium enterprises (SMEs) accounting for 35-40 per cent of production in value terms. The industry is currently facing uncertainty in the wake of the Covid-19 pandemic. However, going ahead, SMEs in this sector will overcome the short-term disruptions, as demand in both export and domestic markets remains robust.
 

Short-term disruptions include high input costs and various operational challenges. Although China has gradually resumed production of raw materials following disruptions in February and March this year, the cost of inputs remains high. While Indian companies have started receiving supplies, their average