Domestic & External Trade
The Indian pharmaceutical industry is highly regulated. The
Government controls prices of a large number of bulk drugs and
formulations. Profit margins of players vary widely in both domestic
and export sales due to many factors.
Domestic Trade
More than 85% of the formulations produced in the country are sold
in the domestic market. India is largely self-sufficient in case of
formulations. Some life saving, new generation under-patent
formulations continue to be imported, especially by MNCs, which then
market them in India. Overall, the size of the domestic formulations
market is around Rs160bn and it is growing at 10% p.a.
Exports
Over 60% of India’s bulk drug production is exported. The
balance is sold locally to other formulators. India’s
pharmaceutical exports are to the tune of Rs87bn, of which
formulations contribute nearly 55% and the rest 45% comes from bulk
drugs. In financial year 200, exports grew by 21%. India’s
pharmaceuticals imports were to the tune of Rs20.3bn in FY2001.
Imports have registered a CAGR of only 2% in the past 5 years.
Import of bulk drugs have slowed down in the recent years.
The exports of Pharmaceuticals during the year 1998-97 were Rs
49780 million. From a meager Rs 46 crores worth of Pharmaceuticals,
Drugs and Fine Chemicals exports in 1980-81, pharmaceutical exports
has risen to approximately Rs 6152 Crores (Prov.1998-99), a rise of
11.91% against the last year exports. Amongst the total exports of
India, the percentage share of Drugs, Pharmaceuticals and Fine
Chemicals during April-October (2000-2001) was 4.1%, an increase of
7%.
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