I published a blog post a few days ago that talked about how to grow a pharmaceutical logistics company in India. In continuation to this, I penned down this blog post that explains how to export pharma products from India.
India has carved a niche to be regarded as fine quality, low cost producer of pharmaceuticals whilst fostering its consistent growth. Not only pharmaceuticals but it is emerging in the field of biotechnology, research & development, clinical data management & clinical trials too. The export basket of India comprises of vaccines, finished dosage combination, bio pharmaceuticals & clinical services etc. to all parts of the world.
Currently, India is amongst top 10 countries to export pharmaceutical products. As Indian pharma exports continue to rise in the world, pharma should focus on improving the quality parameters of the products, its packaging and its life span. Indian pharma products must continue to ameliorate its reputation as an authentic, trustworthy & reliable supplier of pharma products.
Before starting to export pharma products from India, one must exercise SWOT analysis. In its strength, India possesses English speaking manpower with skilled scientists, technicians, management personnel with correct process understanding. The manufacturing labour is also available at an affordable cost. India has well developed Research & Development, infrastructure & advanced capabilities & facilities to comply with regulatory compliance. Indian economy offers robust marketing & distribution network offering exporters an edge over other verticals. On the contrary, small companies lack the ability to compete with MNC’s in R&D processes, new drug discovery due to lack of resources. Increasing cost of transportation & skilled manpower like Scientists, regulatory lawyers, International Business Development personnel etc. pushes up cost of innovation. In regards to opportunities, India allures significant export growth prospects. Our country is considered to be a centre for International clinical trials due to rich diversity encouraging multi-national companies to shift their manufacturing units in India. Indian companies also eyes on further penetrating deep into existing export countries. The major threat is drug Price Control Order which puts unrealistic ceilings on product prices. Export efforts are curbed by bureaucratic obstacles due to tiresome procedures.
In order to start exporting pharma products from India, first & foremost pre-requisite is to register with Director General of Foreign Trade (commonly referred as DGFT) and obtain Import Export Code. This IEC proves to be a stepping stone in paving path for the export resonation. Once IEC is obtained, the pharma exporter needs to register their product with DCGI (Drug Controller General of India). After gaining the Purchase order from buyer, export house is required to produce Export Invoice & Packing List containing important information of type of goods, quantity, value of items, its packing type along with its dimensions & most importantly freight terms etc. The exporter need to ascertain mode of shipment depending on the size, packaging, weight & urgency of the shipment. Once mode of shipment along with freight terms are finalized with buyer, the exporter is required to assign a freight forwarding / logistic company to export pharma products from India to the designated country of Import. The shipment has certain customs clearance processes to be followed prior to export of pharma products from India. During this process, additional NOC is required. The NOC from Drug controller is an approval given to manufacturer of such medical related products authorized by government agencies of manufacturing country. Pharmaceutical products manufacturers and other medicinal related products manufacturers are mandatorily to obtain such No Objection Certificate from drug controller or similar government agencies of exporting country.
The country’s drugs, formulations and biologics account for around 70-75% of the overall exports, with bulk drugs and drug intermediates accounting for 18 to 20% approximately. Other forms includes vaccines, Herbals, Ayush medicines, surgical items make up for remaining exports. Whilst pharma is making strides worldwide, Ayush & Herbal medicines are gaining traction. During Covid-19 pandemic, export of pharma products from India developed manifold. India exports its pharmaceutical products worldwide. However, USA, South Africa, Russia, UK, Middle East, Australia are amongst top countries to import pharma products from India.
In the end, pharma holds a significant place in Export Industry. Indian pharmaceutical industry is making notable advancement in the field of bulk manufacturing & export of pharma products from India. In order to export pharma products, one needs to comply with DGFT, DGCA norms & NOC from ADC is required. After ascertaining the mode of shipment, freight forwarder is appointed to arrange export of pharma products from India. The export process completes once shipment arrives at buyer warehouse & payment is received in shipper’s bank account. The pharmaceutical industry holds a prominent place in India due to stable & affirmative economic policies.