It is true to say that Indian pharma exports are showing a positive trend amidst this Corona pandemic. This is only 1 positive news which has made me happy and feel good during these bad times. Our Indian economy is a developing country from past many years, since independence.
But I must say that it is something which is showing some positive news for our Indian economy. This growth is much unexpected and surprising even from such countries which showed negative growth from the last 8 years. So in this article we will know about the percentage of growth in this sector, reasons for that and future prospects of this sector.
Indian Pharma exports- Reasons for growth
It is known to everyone that this Corona pandemic has increased the demand of various medicines and drugs at a global level. India has much stock of various drugs required by various countries. Since India is always there to help each country. So it has decided to export required drugs to these countries.
Earlier in the first Corona wave, it only sent required drugs and medicines. But now in this second wave, when vaccines are ready to be injected, it has started exporting vaccines also.
All this has resulted in an increased growth rate of Indian Pharma exports. Seeing the scenario, it is much expected and final that it will rise to a much higher level in the coming few months even if this Corona pandemic ends.
Indian Pharma exports- Growth estimates for FY 2020-21 by various studies
Now let us know about Indian Pharma Exports trend as explained by different export councils and experts.
1.The Pharmaceuticals Export Promotion Council of India (Pharmexcil)
Pharmexcil is the export promotion council which from time to time exports growth rates of different countries. It works at a global level to access various countries. Besides this, it also works to promote exports in relation to various countries which requires it. So this council has estimated the growth rate of pharma exports during this Corona pandemic.
According to the council, Indian pharma exports have increased with a growth rate of 48.5% with approximate increase from approx. $1.54 billion to $2.3 billion for March 2021. This growth has been observed in various countries like-
- CIS countries (23.5 %)
- UAE (43 %)
- Middle East (17.5 %)
- Latin American countries (14.5 %)
- Ukraine (40.6 %)
- Australia (21 %)
This above growth rate is observed in such countries which showed negligible or negative exports growth from the last many years. Besides this, it has also mentioned that it is much higher and has an unexpected growth rate from the last 8 years.
2.Department of Commerce
The Department of Commerce is the department established to assess various effects of demand and supply on various countries. It also works at a global level. This department has also accessed growth trends in Indian pharma exports. It has an estimated growth rate of approx. 18% in FY 2021 from earlier growth rate of 7.57% in the FY 2020. Apart from this it has estimated that exports have risen to $24.44 billion from earlier $20.58 billion.
Country wise growth rate can be seen below-
- North America- It has been regarded as one of the largest exporters during this FY 2021 with a growth rate of approx. more than 34%. Besides this, different growth rates for various countries include 30%, 21.4% and 12.6% for Canada, Mexico and USA respectively.
- South Africa- As per their estimates, it is the second largest exporter of India in terms of Indian Pharma exports with growth rate of 28% against last year growth of 2.24%. Various destinations which showed growth in Africa include Kenya, Tanzania and Nigeria.
- Europe- Next in the list of top exporters include Europe. It has recorded a growth rate of 11% for the FY 2021.
Future of Indian pharma exports
Since now vaccines have also been designed for COVID-19 by India. Also, demand has also risen for it by various countries. So it is expected that it will show much more growth in coming months by different export councils and department of commerce. Besides this, it is also expected that it will show a growth in many unexplored countries. This is owing to India’s view to export vaccines to as many countries as it can to help and save lives.
Now we can say that though this is the worst time for all the countries. But at least it is positive that there is some good news for Indian economy. Also it is much positive as it has two positive aspects at the same time. On one hand, it is showing growth for Indian economy in terms of Indian pharma exports. Besides this, on the other hand, it is a way to help different countries at a global level by making available required medicines and vaccines.