Pharma exports touches $25.39 bn in FY23; misses $27 bn target

Hyderabad, Apr 15 (KNN) In the previous financial year pharmaceutical exports from India reached USD 25.39 billion but falling short of the USD 27 billion target.

The miss is due to headwinds, including impact of the Russia-Ukraine war, hampered the pace of growth.

Pharmexcil Director General Ravi Udaya Bhaskar said that compared to USD 24.6 billion in 2021-22, this was a more than a 3 per cent increase and came in the face of higher raw material prices.

“More outgo on freight and the continued focus of global aid agencies on COVID,” he said.

Export of vaccines, in value terms, showed a decline of about 80 per cent with non-governmental and aid agencies which procure medicines and vaccines for distribution to beneficiaries in low-income countries channelling most funds for COVID work. 

This translated into a lower offtake of other vaccines, especially those used as part of universal inoculation programme, and drugs, including those for HIV and tuberculosis, he said.

Negative growth in the important market of Africa, on account of an economic slowdown, as well as in the CIS countries, primarily in Russia on account of the war and sanctions, were key factors that weighed in on the performance. 

An increase in raw material costs and withdrawal of GST exemption on ocean and air freight charges were among the headwinds despite which pharma exporters clocked year on year growth.  (KNN Bureau)