Indian pharma exports to Russia have dropped 24 per cent due to the continuing war between Russia and Ukraine. In April-May 2022 exports were $68 million compared with $89 million in the same period last year, as per the data of the Pharmaceutical Export Promotion Council (Pharmexcil), an arm of the Ministry of Commerce.
“The geopolitical situation marked by the continuing war, payment blues have led to decrease in exports but we believe this is a temporary issue,’’ R Uday Bhaskar, Director – General, Pharmexcil told BusinessLine.
Russia has been a significant market for Indian drug-makers with diverse exports including drugs and formulations, bulk drugs, intermediates, biologics, vaccines, Ayush, herbals and surgicals. The total exports to Russia from India increased 1.21 per cent in 2021-22 at $597 million compared to $590 million in 2020-21.
Q1 results may be affected
According to the director of a Hyderabad-based listed pharma company, the first quarter performance of pharma companies with a major presence in the Russian market would have some`adverse’ impact in view of the Russia situation.
“Contrary to initial expectations, the war has been prolonging with no end in sight. The first half of the current fiscal will surely witness some kind of impact,’’ he added.
Russian market accounts for about 60 percent of total exports to CIS countries, which accounted for 4.6 percent of India’s total pharma exports of $24.6 billion in financial year 2021-22. It’s the fourth largest export market for India, accounting for significant revenues for some Indian drug majors including Dr Reddy’s Laboratories.