Indian pharma seeks greater access to $58 billion South American markets

As global pharma majors exit South America after the coronavirus pandemic, India's Pharmexcil (Pharmaceuticals Export Promotion Council of India) is looking to promote Indian pharmaceutical exports in the Latin American and Caribbean Region.

Pharmexcil is an export promotion wing set up by India's Commerce Ministry.

The Indian government is pushing for preferential market access for drugs and pharmaceutical items, such as generics, active pharmaceutical ingredients (APIs) and alternative medicines, in the $58 billion South American market.

India's Commerce Ministry organized a business delegation to visit Colombia, Bolivia, Peru, and Brazil to discuss the plan with the health ministries and regulatory agencies in these countries, in a bid to further strengthen India's position.

Most Latin American countries were severely affected by the Covid-19 pandemic. Pharma companies and multinational corporations began leaving the region after suffering heavy losses, but it did not seem to affect Indian pharma exports to Latin American countries.

Exports to South America up nearly 19%

Due to their affordability and quality, made-in-India generic drugs drove India's pharmaceutical exports up by 18.7% in 2021 to $24.44 billion. In terms of Indian pharma exports, the region ranks fourth.

Indian pharmaceuticals are currently primarily sold in North America, with Bolivia the biggest importer of pharmaceuticals from LAC countries.

Udaya Bhaskar, director general, Pharmexcil, said the Indian pharma sector still has a great deal of potential to expand its visibility and exports to the region.

Overall pharmaceutical exports from India from April 2021 to March 2022 stood at $24.6 billion, with exports just 0.71% more than $24.4 billion recorded during 2020-21. The target for the financial year 2022-23 is $27.4 billion, which is about 10% over the last year.

Drugs, formulations and biologics accounted for 73.3% of total exports followed by bulk drugs and drug intermediates at 18%. Vaccines, herbals and surgicals accounted for the remaining exports.