Indian Pharma exports drop during April-May, positive projections ahead : Reports

New Delhi, July 18 (KNN) The pharmaceutical exports from India during the month of April and May dropped by 8.5 per cent, reveals CARE ratings. However the sector might register growth later this year.  

According to the recent reports by CARE ratings, there has been a drop of 2.5 billion dollars in exports of the pharmaceuticals sector. The fall in exports is primarily due to the price erosion in the generic market in the United States.

The report further suggests that there have been an increase in the number of distribution channels which leads to subsequent increase in competition for the Indian pharmaceutical products in the International market. The recent fall in exports is in line with the projections from earlier this year.

Since majority of the exports from the Indian pharma industry is to the United States, a stiff competition in the US resulted for a poor market for the Indian exports.

While the projections for April to May seems slow, the Indian pharma exports might rise eventually as drugs worth over 50 billion dollars are likely to become off-patented later this year.

As these drugs go off patent, there would be an opportunity for Contract Research and Manufacturing Services (CRAMS) segment. The Indian pharma industry is likely to grab the opportunity projecting a rise in the volume of exports, the report added. (KNN/ DA)