Drop in pharma exports due to shifting of Manufacturing base

Drop in pharma exports due to shifting of Manufacturing base
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New Delhi: The ongoing winter session of Parliament is briefed with various issues and according to a PTI report submitted in Parliament, the dip in India’s pharmaceutical exports is stated as shifting of manufacturing base units of domestic companies to overseas markets and also absence of blockbuster drugs going off-patent.

According to the reports, exports has decreased to as much as 0.43 percent in 2016-17 in value terms and 6.95 per cent in volume terms said State for Commerce and Industry Minister C R Chaudhary in a written reply to a question in the Rajya Sabha.

He also cited some of the other reasons for the decline in exports include the absence of blockbuster drugs going off-patent; consolidation of buyers in the US into three large groups with significant bargaining power and some of the Indian companies shifting their manufacturing bases to the EU, US and other markets.

The minister said in order to boost exports the Commerce Ministry has increased incentives under the Merchandise Exports from India Scheme for the sector, reports