The first quarter of the 2024-25 fiscal has started on a positive note for homegrown pharmaceutical units eyeing double digit growth amid a rise in orders from African and South East Asian countries though payment woes may keep a lid on the upside.
Drug manufacturers said the acute shortage of generic drugs in the United States is likely to give an edge to large pharmaceutical Indian companies and aid in surging exports.
Pharmaceutical products were the top exported item from Madhya Pradesh in the financial year 2023-24 at Rs 13,158 crore.
Total exports from Madhya Pradesh last year was Rs 65,878 crore.
Amit Chawla, a pharmaceutical manufacturer and exporter said, “Demand for pharmaceutical products has increased in the domestic and overseas market and we have encouraging orders from African and CIS countries. We could have exported more but payment issues with these countries have halted the rotation of capital.”
Demand for generic medicines, antibiotics and cough syrups has risen from traditional buyers giving an edge to home grown companies looking to bridge the gap through higher exports.
India is the world’s third largest manufacturer of drugs by volume after the United States and China. Madhya Pradesh’s pharmaceutical industry contributes about 5.9 per cent in the total pharmaceutical exports of the country, according to the Federation of Madhya Pradesh Chambers of Commerce and Industry.
Parsh Chawla, chairman, Indian Drug Manufacturers Association, MP State said, “The PLI scheme of the government of India and shortage of generic drugs in the US are expected to boost exports of pharmaceutical products from MP that has presence of several giant pharma units. I expect around 10-12 per cent growth in exports from my unit in the ongoing fiscal.”
Drug makers hope that gradual decline in dependency on the China market will give a fillip to exports of pharmaceutical products from MP.
Madhya Pradesh is a home to more than 250 pharmaceutical companies of which close to 60 units are into exports of different pharmaceutical products across the world with major supplies in middle and low income countries.
