India’s US bound pharma exports surge by 15% to $7.83 billion in FY24

NEW DELHI : India’s pharmaceutical exports to the United States, which accounts for nearly a third of the country’s total pharma exports, have rebounded strongly after a period of stagnation.

According to estimates by the Pharmaceutical Export Promotion Council (Pharmexcil), exports to the US surged by 15 per cent to USD 7.83 billion in the first 11 months of the last financial year, more than doubling the 6.18 per cent growth rate seen in the same period of the previous year.

This upswing comes despite the industry grappling with regulatory challenges from the US Food and Drug Administration (USFDA) and rising pricing pressures in the US market.

R Uday Bhaskar, Pharmexcil’s Director General, attributed the robust growth to a recovery after negative export figures in 2022.

“Until FY16, India’s exports were growing at more than twice the rate as we were getting faster approvals of Abbreviated New Drug Applications,” Bhaskar explained.

“However, the USFDA later not only slowed down its approval rate but the US local market was also sluggish,” he added.

Overall, India’s total pharmaceutical exports increased by 9.34 per cent to USD 25.04 billion in the April-February period, compared to USD 22.9 billion in the corresponding period last year. The US market remains a crucial destination, absorbing around 30 per cent of India’s total pharma exports.