India's Pharma Exports Surge: US, Europe Key Destinations

New Delhi, Oct 17 (PTI) Driven by innovation, expanding capacity and competitive pricing, the country's exports of surgical goods, drug formulations, and biologicals in the pharma sector are making significant inroads in the developed markets of the US and Europe.

According to the commerce ministry data, exports of these goods have recorded healthy growth rates during April-August this fiscal.

Surgical exports rose by 3.3 per cent to USD 0.29 billion during the first five months of the current financial year 2024-25. Similarly, the outbound shipments of drug formulations and biologicals grew by 10.8 per cent to USD 9.42 billion during the period, the data showed.

This sustained growth highlights India's increasing prominence as a reliable supplier of these products in the global markets, an official said.

"This sustained growth underscores India's growing global presence in pharmaceutical formulations and biological products, driven by high-quality manufacturing and expanding demand for generics and innovative therapies worldwide," the official added.

The exports of drug formulations and biologicals in April-August 2024 demonstrate a diversified global presence, supplying to both advanced economies and emerging markets.

The US remains the largest destination, accounting for 39.2 per cent of the total exports, valued at USD 3.69 billion, reflecting the country's pivotal role in meeting the growing demand for generics and life-saving medicines in the American market.

The UK follows with 3.4 per cent of exports, worth USD 316.2 million, while South Africa accounted for 2.8 per cent with USD 268.3 million.

These countries are followed by France (2.6 per cent) and Canada (2.1 per cent) with exports valued at USD 242.9 million and USD 197.0 million, respectively during April-August 2024.

In the Middle East, India's exports to Iraq nearly doubled from USD 43.5 million to USD 86.5 million during the first five months of this fiscal.

Similarly, India's surgical exports have experienced consistent growth over the past five years, reflecting the sector's increasing global demand and the country's expanding capacity to supply high-quality surgical products.

In 2019-20, exports were valued at USD 0.45 billion. In 2023-24, it was increased to USD 0.70 billion.

In the first five months of the current fiscal year (April-August 2024), surgical exports have reached USD 0.29 billion, growing by 3.3 per cent.

"India's surgical products are in high demand across both advanced and emerging economies, underscoring the country's reputation for delivering high-quality and competitively priced medical supplies," the official said.

In April-August 2024, the US emerged as the largest destination for surgical exports, accounting for 18.1 per cent of the total, with shipments valued at USD 53.1 million.

Advanced European markets such as Germany and the UK each represented 4.6 per cent of exports, with values of USD 13.5 million and USD 13.4 million, respectively.

Meanwhile, emerging markets like Brazil and Spain also demonstrated significant demand, with exports to Brazil totalling USD 12.7 million (4.3 per cent share) and Spain at USD 10.8 million (3.7 per cent).

"This diversified export landscape reflects India's ability to meet the stringent standards of advanced economies while also catering to the growing needs of emerging markets, reinforcing its status as a key global player in the surgical products sector," the official said.