India’s pharma export has been dwindling for some time, but with government’s promise to support the industry, the stakeholders are optimistic of a quick relief.
Amidst concerns of India’s overall declining export numbers, commerce minister Nirmala Sitharaman met representatives of the Pharmaceutical Export Promotion Council of India (Pharmexcil) and the minister assured pharma exporters that the government will do all it can to boost pharma exports. India ranks fourth in pharmaceutical production in the world with a production output of about $31 Billion in 2014. The country has a 1.4 percent share by value and 10 percent by volume in the global pharma industry. India is one of the leaders in pharmaceutical exports. Major export markets for the country’s pharmaceutical products are Americas, Europe, China, Japan and Africa. The US is the single-largest export destination, accounting for nearly 28 percent of domestic pharmaceutical exports, followed by the European Union (18 percent) and Africa (17 percent). A recent joint study by Assocham (Associated Chambers of Commerce of India) and business research consultancy firm RNCOS recommended focus on quality control, creation of robust supply chain network, support to other states, access to modern technology and need for infrastructure development. With the high value pharma products requiring temperature-controlled logistics the export is highly reliant on air freight. India’s pharma export has been an attractive destination for many global cargo carriers. Earlier this year Delhi International Airport and Amsterdam Airport Schiphol signed a memorandum of understanding to collaborate on, and promote, cargo business between them. The MoU’s scope includes business promotion, product development, knowledge sharing, training, performance benchmarking and regulatory agency cooperation. In fact the Netherland’s pharma trade with India in 2014 was 1250 tonnes with imports totaling to 900 tonnes and exports at 350 tonnes. “Our country incidentally showed the second highest growth in Indian pharma imports in the whole of the EU in 2014,” said Bart Pouwels, business development director for cargo at Amsterdam Airport Schiphol. IAG Cargo will begin freight services on the new Boeing 787-9 Dreamliner from October this year, with cargo bellyhold capacity of seven pallets and 16 tonnes of lift. The next-generation aircraft will launch five times weekly on the London Heathrow-Delhi route starting on October 25. “IAG Cargo is in the midst of one of the biggest fleet upgrade programmes in our group’s history. The 787-9 is at the heart of this transformation, delivering more cargo capacity than its predecessors more efficiently and making it well-suited to our bellyhold operations,” commented Steve Gunning, CEO, IAG Cargo, about the new launch. In August this year Chapman Freeborn Air chartering coordinated two time-sensitive charters to transport pharmaceutical cargo from India to the US for the launch of a new asthma treatment product. Working in partnership with an international freight forwarder, Chapman Freeborn’s cargo charter team provided two B747-400F aircraft to fly 35 tonnes of medicines from Mumbai to Philadelphia and 15 tonnes to Washington. “When moving pharmaceutical cargo a careful and systematic approach must be undertaken to ensure the temperature-controlled requirements are met,” said Vikas Chaturvedi, project manager, Chapman Freeborn.