The war between Israel and  Palestine is unlikely to have any adverse impact on Indian pharma exports/industry, according to R Uday Bhaskar, Director-General, Pharmaceuticals Export Promotion Council (Pharmexcil). “As of now, we don’t see any adverse impact on the Indian pharma exports to Israel; the quantum of exports to Palestine is not significant,’‘ Bhaskar told businessline on Sunday. 

There is also a need to wait and watch to see the nature and likely duration of the ongoing military conflict that can impact the Israeli market, said the Pharmexcil DG. Indian pharmaceutical exports to Israel have been showing notable growth. In 2022-23, pharma exports to Israel grew 40 per cent at $92 million, compared to $60 million in the previous year. “The Compounded Annual Growth Rate (CAGR) for the last five years is 22 per cent,’‘ said Bhaskar. 

Bulk drugs and intermediaries, drug formulations, and biologicals are the two components of the exports. During the April-August period of FY24, too, there was a 9 per cent growth as exports reached $57 million, against $53 million in the year-ago period. 

With regard to Palestine, there has been growth, too, though the overall quantum appears to be on the lower side. Exports grew 41 per cent at $2.36 million in the financial year ended March 2023, compared to 1.94 million in the year-ago period, according to Pharmexcil data. 

While there is no immediate concern, some industry players are concerned over the developments in Israel. “Any violent geopolitical situation is a concern for the industry, as it could disturb the supply chain balance and inventory management like it happened in the initial months of Russia-Ukraine war,’‘ said a director with a Hyderabad-based pharma major. 

“Israel is an established well-regulated pharma market, with a presence of global pharma majors. If the war continues for a longer period, it could be a cause for concern,’‘ he added.