Pharma exports decline due to shifting of manufacturing bases abroad: Govt
The Dollar Business Bureau
Moving of manufacturing bases to international markets by some domestic firms and lack of blockbuster drugs going off-patent are some of the reasons for decline in country’s pharma exports, C R Chaudhary, Minister of State for Commerce and Industry informed the Parliament on Wednesday.
The pharmaceutical exports dropped by 0.43% in terms of value and 6.95% in terms of volumes in financial year 2016-17, Chaudhary said in a written response to the Rajya Sabha.
The Minister said some of the reasons for decline in pharma exports include consolidation of buyers in the US into three large groups with significant bargaining power, absence of blockbuster drugs going off-patent and certain Indian companies shifting their manufacturing bases to the US, EU and other overseas markets.
Chaudhary further said that a huge number of Abbreviated New Drugs Applications (ANDA) were permitted by the United Stated Food and Drug Administration (USFDA) which led to increase in competition in generics market and resulted in price drops.
In order to boost pharmaceuticals exports from the country, Ministry of Commerce has enhanced incentives for the sector under the Merchandise Exports from India Scheme (MEIS), he said.
India’s pharmaceutical export stood at $16.84 billion in the fiscal of 2016-17. The country is the biggest supplier of generic medicines (20% of global export volume) across the world.
Indian pharmaceuticals industry generates about 70% of its revenues from the sale of generic drugs and earns about 50% of its revenues from exports.