India sets ambitious pharma export growth targets

FRANKFURT – India Brand Equity Foundation (IBEF) and Pharmaceutical Export Promotion Council of India (Pharmexcil) announced at CPhI Worldwide the country’s plans for growth and its commitment to lowering the cost of medicines globally – forecasting that India will retain its explosive growth in generics exports (24% for last 4-years) and commitment to lowering the cost of vital medicines through its development expertise.

IBEF is a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India. The Trust’s primary objective is to promote and create international awareness of the Made in India label in markets overseas and to facilitate dissemination of knowledge of Indian products and services. Towards this objective, IBEF works closely with stakeholders across government and industry.

In 2012, UNICEF’s Supply Annual Report recognised India was recognised as the largest supplier of generics globally, and the Government of India and Pharmexcil jointly predict that the Country is now at a transformative stage in its development, having created a conducive regulatory and business environment for fostering innovation and growth.

This year alone, India’s pharma exports stand at some $14.7 billon (2012-2013), registering a growth rate of 11%, with 55% of exports heading to highly regulated western markets. It is in the developing economies where India is singlehandedly improving access to life-saving medicines. The Government has set a target of $25 billion for pharmaceutical exports by 2016.

In support of these goals, the Government of India has already put in place supportive initiatives with the goal of cementing the country’s position as the “Pharmacy of the World”. The Government has made tax breaks available to the pharmaceutical sector and a weighted tax deduction of 150% for any R&D expenditure incurred. They have also introduced 19 dedicated Special Economic Zones to help stimulate pharma sector investment across the Country. As a result of these initiatives, it is predicted that R&D expenditure will continue to grow at an annualised rate of nearly 20% for the next few years. “During the last three years India’s exports of pharmaceuticals have been growing at 17%.  We are expecting a CAGR of around 20% in the next five years,” said Dr Appaji P V, director general, Pharmexcil.

Sustaining this explosive growth has been a commitment to nurture the next generation of scientists and the Department of Pharmaceuticals has set aside $478.4 million to set up 10 more National Institute of Pharmaceutical Education and Research (NIPER).

“India’s pharma industry has undergone a sustained period of consolidated expansion, thanks to the Government’s ability to facilitate policies and economic conditions that have fostered growth. This development is timely. When nations across the globe are grappling with increased resource requirements for growing healthcarJordan Shoes