India's pharmaceutical exports are set to experience significant growth, projected to increase by over 11% and reach a record $31 billion in the fiscal year 2025. This impressive rise is attributed to multiple factors, including a notable shortage of drugs in the key U.S. market.
For the fiscal year ending March 2024, pharmaceutical exports—a cornerstone of the country’s global trade—rose by 9.6% to $27.8 billion. Despite numerous global challenges, more than 50% of these exports were directed to highly regulated markets such as North America and Europe. Exports to the U.S. saw a notable 15% increase, surpassing $8 billion, while exports to the U.K. rose by 21%, reaching $783 million. These figures underscore the robust growth and resilience of the Indian pharmaceutical industry, even under challenging circumstances.
The ongoing production of quality drugs at affordable prices continues to ensure the industry's unparalleled position globally. However, the sector faced several challenges last fiscal year, including geopolitical tensions, economic slowdowns, and logistical issues.
A key factor driving this growth is the expected increase in the shortage of generic prescription drugs in the U.S., following the shutdown of some production units. Additionally, demand in Africa is projected to rise as non-governmental organizations, which had shifted focus to COVID-19, return to supplying free drugs. Pharmaceutical exports to Africa, which had declined by 5% in the fiscal year 2023, ended 8% higher in the last fiscal year. Exports to other markets, excluding CIS countries, also saw year-on-year growth in the fiscal year 2024. Indicative of the positive trend, exports in April 2024 rose by more than 7%.
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