India’s formulation and bulk drug exports improved 18% and 9% on-year (in constant currency) during the first half of thisfiscal, compared with 11% and -1%, respectively (in constant currency) for the whole of fiscal 2020.

A spike in demand for pharma products, induced by the Covid-19 pandemic, and hoarding of supplies by some nations in the wake of production disruptions, have boosted exports.

Further, increasing customer diversification away from China with respect to bulk drug policy, coupled with some countries adopting a ‘China plus one’ policy, has led to increased demand for active pharmaceutical ingredients (APIs) from India.

Robust demand from most economies boosted India’s exports in the first half

Major regions such as the US and Europe brought good exports growth due to increased demand for drugs - especially antivirals and antibiotics for treatment of Covid-19. For example, several Indian players have inked agreements with Gilead Sciences to manufacture and export Remdesivir.