10% growth in pharmaceutical exports in FY24 despite global interruptions and quality issues

India seems to be defying the trend with its pharmaceutical exports. The decline in global demand and geopolitical concerns have caused a reduction in total goods exports; nevertheless, pharmaceutical exports have increased by 9.6% to $27.8 billion in FY24.

For the pharmaceutical industry, this is the largest export increase in the last three years. According to experts, important categories including API (active pharmaceutical ingredients) and generic formulations, which account for 73% of all exports, have seen strong growth from important markets like the US, Europe, and Africa.

With the Middle East in the epicenter of geopolitical unrest, the region’s contribution of global exports is relatively small, at 3.7%. The pharmaceutical industry has so far weathered the world’s storms unharmed, but it is too soon to tell how the Iran-Israel crisis would affect other industries, according to Ravi Uday Bhaskar, director general of the Pharmaceutical Export Promotion Council.

Indian drugmakers have had very difficult times over the last two years. There have been several reports of subpar Indian medication supply in nations including Uzbekistan, Sri Lanka, and the Gambia. For example, in 2023, when patients at government hospitals had difficulties from cataract procedures, Indian-made medications came under investigation. Previous to then, India’s reputation as a world leader in the pharmaceutical industry was tarnished by the deaths of 88 children in the Gambia and Uzbekistan from cough syrup manufactured in India.

In January of this year, the government amended Schedule M of the Drugs and Cosmetics Rules, 1945, in response to these instances. In accordance with the most recent international regulatory needs, these regulations have established new quality criteria.

Experts said that despite the challenging market conditions, pharmaceutical companies are searching for creative strategies to maintain and increase exports. Indian businesses are making significant investments to expand their product offerings. To expand the international market, they are venturing into the biosimilar, injectable, and complicated generics sectors. Pharma exporters are increasing their geographic reach to include Latin American and Japan at the same time. Nevertheless, much more may be done to expand the export market, according to Indian Pharmaceutical Alliance secretary general Sudarshan Jain.