Findings of a survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) indicate a large majority of export industries of the country will be recording either negative or zero growth in 2009-10 fiscal. Among them, only the pharmaceutical industry would be able to chip in a decent growth of 13 percent, and that too by slashing its forecast by 10 percent from 23 percent.
The participants in the survey admitted the primary reason for the decline in demand from all regions was owing to the current global economic crises. About 56 percent of the respondents said the rupee depreciation had only moderate positive effect, whereas 14 percent opined that it had a huge positive impact.
AK Jain of Ipca Laboratories Ltd, the leader in anti-malarials stated a major cause of concern among the exporters was the price fluctuation of the currency. The Indian pharma export industry is confident of maintaining its growth despite economic slowdown, and the reason for that is the expenditure on medicines is relatively inelastic to changes in income levels.
Department of Pharmaceuticals of India in its latest release stated the pharma exports had grown by 22 percent from about $4.7bn in 2006-07 to around $6bn in 2007-08. The US is the largest market for Indian pharma exports, and India produces 8 percent of the pharma requirements of the world and absorbs about 2 percent in value.
The India is regarded as the largest global pharma outsourcing market. The country’s significant growth in this field is chiefly attributed for producing high quality medicines and drugs at very low prices to the international market. Experts find that the pharma exports of the country will continue to grow at a reasonable pace of 15-18 percent for few more years as the industry do not envisage any competitors in terms of quality or price in the near future.