Pinning hopes on the recovery of the USA market, a top official of the Pharmaceuticals Export Promotion Council of India (Pharmexcil)on Friday said Indian pharma exports may touch $22 billion during the current financial year against $19.14 billion in FY '19.
Speaking to reporters, director-general of Pharmexcil, a body under the Ministry of Commerce and Industry, Uday Bhasker said some of the policy decisions being taken by the Chinese government may align favourably to Indian pharma exporters.
In July 2019, Indian exports recorded 21.7 per cent growth to 1.72 billion (total exports from April to July this year was at $6.17 billion), he said.
The cumulative growth of Indian exports for the period April-July was 13 per cent.
As of June 2019, Indias generic pharmaceutical exports have grown almost 2.7 to 2.8 times faster than the market (global generic market), he said.
"Hence, we expect the exports to touch $22 billion in the fiscal 2019-20," Bhaskar said.
"The prices (in USA market) are now stabilised. Even when there was price erosion, our export volumes were growing. That is why the US market has revived," he said.
Despite price erosion and cartelisation in the USA market, the market there started recovering with 13.72 per cent growth in FY '19 against negative growth of eight per cent in FY '18, Bhaskar said.
Exports to North America, Africa and European Union contribute nearly 66 per cent of the total Indian pharma exports comprising bulk drugs, finished dosage formulations, Ayush and herbals and surgical, statistics supplied by the Pharmexcil said.
On exports to China and Japan markets, the official said the Japan market was basically not favourable for generic drugs and also doctors in that country were also not willing to promote generic versions.
The registration of drugs in China takes lot of time for Indian companies. There was some policy change last year which was perceived as an opportunity for Indian exporters, he said.
According to him, India currently imports APIs (Active Pharmaceutical Ingredient) and other chemicals worth $2.5 billion from China while drug exports to the country was at $230 million.
Pharmexcil would be organising a two-day 'International Regulators Meet' here on September 19 and 20.
About 40 delegates, including some drug regulators, from 25 countries are expected to participate in the meet, Bhaskar said.