Weakening rupee may not be shot in the arm for India's pharma exporters

The rupee has been hovering above Rs 85 mark vis-a-vis the US dollar in the recent past

The recent depreciation of the Indian rupee against the US dollar may not necessarily bode well for India’s pharmaceutical exporters in the immediate term, experts said. 

While some believe the devaluing rupee will have little immediate impact on exports due to annual contracts being hedged against currency fluctuations, others warn that smaller players may lower prices in response to the currency tailwind, potentially triggering price renegotiations. Exporters note the higher import costs for active pharmaceutical ingredients (APIs) could offset the gains from the export surge. 

Last week, the rupee weakened against the US dollar, reaching a fresh closing low of