India is the largest supplier of medicine to the US, and pharmaceutical exports from India to the US rose from US$3.44 billion in 2013 to US$3.76 billion in 2014.
Pharmaceutical exports to the US are rising due to the increasing demand for high quality generic drugs in the market. However, the growth rate for exports of pharmaceutical products from India to the US is declining, due to increasing US Food and Drug Administration (FDA) scrutiny on the quality of pharma products coming from drug manufacturing plants located in India. In order to boost the growth rate of exports to the US, Indian companies will need to leverage their compliance to US FDA regulations.
The exchange rate crisis in the country is affecting the pharmaceuticals market in Russia. For example: Dr. Reddy's pharma revenues in Russia dropped 9% in dollar terms despite a rise of 30% in Rubles. Hence, stabilization of the currency is of utmost importance in generating revenues through exports.
In addition, many Indian companies are operating through the Pharmaceutical Benefits Program (PBP) and hospital tenders, for supplying vital and essential drugs, for which prices are then regulated by the Russian government.
The exports of pharmaceutical products to Africa are being affected owing to the following barriers port delays and prolonged custom valuation, testing and certification requirements may lead to rejection of products at ports, and the cost of returning consignments to India is huge and registration process for any generic pharmaceutical drug is time consuming.
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