India's Pharmaceutical Trade

Indias Pharmaceutical
Trade
Group 7
Section C
1301-309
1301-036
1301-156
1301-319
1301-412
1302-049
Amanpreet Kaur
Aseem Shandilya
Prateek Kumar
Anuj Kulkarni
Shubham Tandon
Erri Anvesh Reddy
1302-062
Harshvardhan Singh
Pharmaceutical Industry in
India: A Snapshot
Commodity
2013-2014
($USD)
%Share
2014-2015(AprSep) ($USD)
%Share
PHARMACEUTICAL
PRODUCTS
11,140.50
India's Total Export
3,14,405.30
Commodity
2013-2014
($USD)
%Share
2014-2015(AprSep) ($USD)
%Share
PHARMACEUTICAL
PRODUCTS
1,553.62
0.3451
788.35
0.3371
India's Total Import
4,50,199.79
3.5434
5,915.72
3.6923
1,60,215.92
The Indian pharmaceutical industry

stands at the third position in terms
of volume and 10th in terms of
value. (Source: IBEF)
FDI in Pharmaceuticals is 100%
2,33,842.44
Source: Department of Commerce
Indian Pharmaceutical Market

Segments by Size
Largest exporter of
formulations in terms of
volume, with 14 per
cent market share and 12th
in terms of export value
Trade
between
India
&
China
EXPORT
IMPORT
Non Tariff Barriers in

Pharmaceutical Industry
Intellectual Property Rights
Counterfeiting cases had risen sharply in china
Laws are weak
Protectionism
Government gives export subsidies and tax benefits to its domestic firm to increase the
exports and production
Language
Communication & Documentation in Chinese
Obtaining market information is difficult
Registration
Application for registration is often delayed
Registration charges are quite high
Example- Clarathromycine by India-Swift took 2 years for registration
Major Step Taken

MOUS (MEMORANDUM OF UNDERSTANDING) ON
PHARMACEUTICALS (2013)
Indian pharmaceutical export promotion council of India
and china chamber of commerce for export and import
of medicine and health care products
Recommendation
India and China should talk about notorious registration
system
IPR laws must be made more stringent
Indias pharmaceutical trade with Australia

S.No.
\Year 2009-2010
Values in US$
Million
%Growth
Total export of
commodity
4
5
%Growth
%Share of
country (1 of 3)
Total export to
country
%Growth
%Share of
commodity (1
of 6)
67.01
Export
Data
2010-2011
2011-2012
2012-2013
2013-2014
84.96
128.31
144.85
173.61
26.78
51.03
12.89
19.86
6,676.43
8,483.46
10,062.70
11,140.50
28.61
27.07
18.62
10.71
1.29
1.27
1.51
1.44
1.56
1,384.96
1,713.02
2,476.84
2,348.65
2,300.28
23.69
44.59
-5.18
-2.06
4.96
5.18
6.17
7.55
5,191.18
4.84
Indias pharma trade

with
Australia
Import
S.No.
\Year
Values in US$
Million
%Growth
Total Import of
commodity
4
5
%Growth
%Share of
country (1 of 3)
Total Import to
country
%Growth
%Share of
commodity (1
of 6)
2009-2010
5.44
Data
2010-2011
2011-2012
2012-2013
2013-2014
7.73
10.4
10.64
11.32
42.16
34.43
2.38
6.32
1,204.81
1,685.52
1,747.65
1,553.62
9.73
39.9
3.69
-11.1
0.5
0.64
0.62
0.61
0.73
12,407.37
10,789.00
15,578.52
13,085.70
9,822.52
-13.04
44.39
-16
-24.94
0.07
0.07
0.08
0.12
1,097.93
0.04
India-Australia Pharma Trade

Australian Pharmaceuticals Industry is small in the context of global
demand
The Pharmaceutical Benefits Scheme (PBS) is central to the delivery of
medicines to all Australians
While the PBS allows for universal access to prescription products, the
size of the population means that sales are small.
Australia's population represents around 0.3 per cent of the world yet
consumes around one per cent of total global pharmaceuticals sales
In 2009 Australia was the 12th largest pharmaceuticals market by
sales, while being ranked 55th on population.
High regulatory and compliance standards act as disincentives in
Australia
The red tape burden and associated additional costs that pharmaceutical
companies face in Australia must be acknowledged and addressed.
Australias legislation is consistent with the TRIPS framework and the IP
regime for pharmaceutical patents is in line with those operating in other
developed markets
Indias pharmaceutical
trade
with
Japan
Export
S.No.
Year 2009-2010
Values in
US$ Million
2
3
%Growth
Total export
of commodity
4
5
%Growth
%Share of
country
Total export
to country
7
8
%Growth
%Share of
commodity
Data
2010-2011
2011-2012
2012-2013 2013-2014
8.54
13.8
47.6
66.96
56.71
5,191.18
61.47
6,676.43
245.03
8,483.46
40.66
10,062.70
-15.31
11,140.50
0.16
28.61
0.21
27.07
0.56
18.62
0.67
10.71
0.51
3,629.54
5,091.24
6,328.54
6,100.06
6,814.07
0.24
40.27
0.27
24.3
0.75
-3.61
1.1
11.71
0.83
Indias pharmaceutical
trade
with
Japan
Import
S.No.
Year 2009-2010
Values in US$
Million
%Growth
Total Import
of commodity
4
5
%Growth
%Share of
country
Total Import
to country
%Growth
%Share of
commodity
14.13
Data
2010-2011
2011-2012
2012-2013
2013-2014
19.18
21.63
20.24
11.97
35.74
12.76
-6.42
-40.86
1,204.81
1,685.52
1,747.65
1,553.62
9.73
39.9
3.69
-11.1
1.29
1.59
1.28
1.16
0.77
6,734.18
8,632.03
11,999.43
12,412.29
9,480.75
28.18
39.01
3.44
-23.62
0.22
0.18
0.16
0.13
1,097.93
0.21
India-Japan Pharma Trade

Japan is the second largest pharma market with over $120 billion turnover
In Japan, generics constitute only 11 percent
Increased health insurance burden has propelled the government to promote the
adoption of generic medicines in the market
DPC hospitals are managed under a `fixed-rate' payment reimbursement system
providing incentives to use generics
Generics market in Japan stands at US$ 3 billion growing at 8% in a total market of
120 billion
Indias Commerce Ministry has set up India-Japan Pharma Alliance (IJPA) in Japan
under the aegis of Pharmexcil, which was co-founded by IDMA
Indian companies, such as Lupin Pharma, Orchid Pharma, Dr Reddy's Laboratories,
Aurobindo Pharma, Neuland Labs and Zydus Cadilla, have forayed into the Japanese
market
APIs are the main export component since Japan requires bioequivalence test to be
conducted in Japan itself
Under the Cepa, signed in February 2011, Japan accords national treatment to Indian
drug makers vis--vis its domestic manufacturers but does not recognise
pharmaceutical products exported by India to that market under a preferential tariff
regime in terms of standards and quality
Pharmaceutical Exports-Russia
S.No.
1
2
3
4
5
6
7
8
\Year
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
431.93
401.1
562.46
535.89
66.79
6,676.43
-7.14
8,483.46
4.99
28.61
6.47
27.07
4.73
18.62
5.59
10.71
4.81
980.69
1,689.43
1,778.27
2,295.68
2,121.26
26.41
72.27
25.57
5.26
22.56
29.1
24.5
-7.6
25.26
Values in
258.96
US$
Million
%Growth
Total
5,191.18
export of
commodity
%Growth
%Share of
country (1
of 3)
Total
export to
country
%Growth
%Share of
commodity
(1 of 6)
40.23
-4.72
10,062.70 11,140.50
Pharmaceutical Imports-Russia
S.No.
\Year
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Values in
US$ Million
0.6
0.39
2.56
0.39
0.43
2
3
%Growth
Total Import
of
commodity
1,097.93
-36.12
1,204.81
562.52
1,685.52
-84.59
1,747.65
8.57
1,553.62
4
5
%Growth
%Share of
country (1 of
3)
Total Import
to country
0.06
9.73
0.03
39.9
0.15
3.69
0.02
-11.1
0.03
3,566.79
3,600.02
4,764.31
4,231.56
3,894.40
0.02
0.93
0.01
32.34
0.05
-11.18
0.01
-7.97
0.01
7
8
%Growth
%Share of
commodity
(1 of 6)
Indias pharmaceutical trade with UK

Export
Data
S.No.
Year
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Values in
US$ Million
269.43
287.82
354.51
383.18
400.8
%Growth
6.82
23.17
8.09
4.6
Total export
of commodity
6,676.43
8,483.46
10,062.70
11,140.50
%Growth
28.61
27.07
18.62
10.71
%Share of
country (1 of
3)
Total export
to country
5.19
4.31
4.18
3.81
3.6
6,221.39
7,284.96
8,589.93
8,612.54
9,779.07
17.1
17.91
0.26
13.54
3.95
4.13
4.45
4.1
6
7
%Growth
%Share of
commodity (1
of 6)
5,191.18
4.33
Indias pharmaceutical trade with UK

S.No.
Year
2009-2010
Values in US$
Million
159.2
%Growth
Total Import
of commodity
%Growth
%Share of
country (1 of
3)
Total Import to
country
%Growth
%Share of
commodity (1
of 6)
Import
Data 2011-2012
2010-2011
2012-2013
2013-2014
152.65
202.59
249.59
271.28
-4.12
32.72
23.2
8.69
1,204.81
1,685.52
1,747.65
1,553.62
9.73
39.9
3.69
-11.1
14.5
12.67
12.02
14.28
17.46
16,973.68
20,050.72
23,454.92
25,204.73
22,505.08
18.13
16.98
7.46
-10.71
0.76
0.86
0.99
1.21
1,097.93
0.94
In 2013, the pharmaceutical sectors contribution to the

balance of trade was the third greatest of 9 major industrial
sectors (2.8 billion)
Rank 10th in global pharmaceutical top markets
Two of the worlds top 10 Pharmaceutical companies,
GlaxoSmithKline (GSK) and AstraZeneca (AZ) based out of UK
Two of the worlds top 10 Pharmaceutical companies,
GlaxoSmithKline (GSK) and AstraZeneca (AZ) based out of UK
Key Issues
Decreasing employment in Pharmaceutical Industry From 73000 in 2012 to 70000 in 2013
Decreasing expenditure in R&D Decline by 700 million last year
Declining market share of products launched in last five years as compared to other
developed markets
Parallel Trade in drugs
Expenditure in R&D
Market Share of Product

Launches
Country Analysis Matrix

COUNTRIES
RISKS
POLITICAL
STABILITY
CORRUPTION
FINANCIAL &
ECONOMIC
FOREIGN
EXCHANGE
GDP /GNP
GOVERNMENT
HEALTH
EXPENDITURE/
INFRASTRUCTURE
INFLATION
DEMOGRAPHIC
TOTAL
POPULATION
AGEING
FACTO JAPA
R
N
WEIGH
X1
TS
UK
USA
AUSTRA
LIA
CHINA
RUSSI
A
FX1
X2
FX2
X3
FX3
X4
FX4
X5
FX5
X6
FX6
24
12
18
36
30
24
16
32
40
48
42
14
28
21
35
18
24
12
36
30
20
25
30
15
10
30
12
24
18
36
30
24
12
36
18
18
24
36
12
30

India's Pharmaceutical Trade

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India's Pharmaceutical Trade

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Indias Pharmaceutical

India's Total Export

India's Total Import

The Indian pharmaceutical industry

Source: Department of Commerce

Indian Pharmaceutical Market

Source: Department of Commerce

Non Tariff Barriers in

Major Step Taken