The diplomatic stand-off between India and Canada is unlikely to have any impact on the pharmaceutical exports, according to R Uday Bhaskar, Director-General, Pharmaceutical Export Promotion Council.
“Going by the current state of affairs, I do not think any adverse impact is possible. Canada is the second biggest market in North America after the US for pharma exports and therefore, it is an important geography for our pharma industry,’‘ he told businessline.
Indian pharma exports to Canada grew 21 percent at $506 million in FY23 compared to the previous financial year. During the April-July period In the current financial year, the exports stood at $149 million, according to pharmexcil data. “Canada is a highly regulated market and our presence in Canada can give pharma exporters some additional advantages,’‘ Bhaksar said. About 75 percent of Indian Drug exports to Canada are formulations.
The pharma industry, however, appears to be a little concerned and is keenly watching the developments. “The current developments are unexpected. We hope the diplomatic rupture will not escalate to economic aspects. The government needs to be cautious in this regard,’‘ said the senior director of a Hyderabad-based pharma major which has considerable presence in the Canada market.
The pharma industry almost managed to steer clear of impact of the Russia-Ukraine war but other external shocks could be ‘disadvantageous’, he added.