Indian pharma exports to Iran decline thanks to its lower rupee reserves
Source: Business Standard
India’s pharmaceutical exports to Iran have been affected due to depleting rupee reserves in the West Asian country. This is a result of India ceasing its crude oil imports from Iran in mid-2019, following US sanctions on Tehran.
The geopolitical shifts have impacted India’s pharmaceutical exports to Iran, which fell by 71.25 per cent in the April to August period this year compared with the same period last year. Data from the Pharmaceutical Exports Promotion Council (Pharmexcil) indicates that exports to Iran declined by 31.29 per cent in the financial year FY23 compared with the previous financial year.
Uday Bhaskar, director general of Pharmexcil, told Business Standard, “India’s exports to Iran have reduced in the first few months of this year by about 71 per cent due to India buying less oil from Iran, and the rupee-trade being adversely affected.”
Pharmexcil is now initiating dialogues with Iran to boost trade. Bhaskar met Heydar Mohammadi, head of administration at the Food and Drug Administration in Tehran, and Mohammad Abdehzadeh, chairman of the board at the Syndicate of Iranian Pharmaceutical Industries, earlier this week to discuss potential areas of collaboration between the two countries in the pharmaceutical and biopharmaceutical sectors.
Iran primarily imports bulk drugs and intermediates from India, while it relies on European countries for formulations. Bulk drugs make up nearly 65 per cent of India’s pharmaceutical exports to Iran.
Iran is a significant market in the West Asia and North Africa region for Indian pharmaceutical exports. In terms of value, however, it is a smaller market compared to the US ($8.3 billion in FY23) or Europe ($5 billion). India’s pharmaceutical exports to Iran were $59.14 million in FY23, down from $86 million in the previous financial year. The exports have been declining in recent years, data reveals — from $205.1 million in FY20 to $59.14 million in FY23.
