PLI Scheme Shows Results: Indian Pharma Exports Grow By 10 Per Cent, Sector Reaches To New Markets

The pharmaceutical sector of the country experienced a notable increase in exports, growing by 9.67 per cent year-on-year to reach USD 27.9 billion in the 2023-24 fiscal year.

This growth occurred despite an overall 3 per cent dip in total exports during the same period as per a report by The Indian Express.

Data from the commerce ministry indicates that pharmaceutical exports in March alone grew by 12.73 per cent to USD 2.8 billion. Comparatively, in the 2022-23 period, exports were at USD 25.4 billion.

This comes after Rs 6,940 crore was allocated for production-linked incentive (PLI) scheme for Key Starting Materials (KSMs)/ Drug Intermediates(DIs) and Active Pharmaceutical Ingredients (APIs).

The primary export markets for the sector in the last fiscal year were the US, the UK, the Netherlands, South Africa, and Brazil. The US accounted for over 31 per cent of India's total pharmaceutical exports, followed by the UK and the Netherlands, each at around 3 per cent.

In 2023-24, the sector expanded its reach to new markets such as Montenegro, South Sudan, Chad, Comoros, Brunei, Latvia, Ireland, Sweden, Haiti, and Ethiopia.

Industry experts attribute the consistent growth in exports to increasing market opportunities and robust demand in countries like the US.

They predict that India's pharmaceutical industry could surpass USD 130 billion by 2030, driven by expanding market prospects and heightened demand overseas. The industry's worth was over USD 50 billion in 2022-23.

On average, India exports pharmaceutical products worth USD 2-3 billion every month, making it the third-largest producer by volume and the 13th largest by value globally, offering over 60,000 generic drugs across 60 therapeutic categories.