Pharmaceutical Medicines Exports From India
The Indian pharmaceuticals industry is the third-largest in terms of volume and thirteenth-largest in terms of value. It has established itself as a global manufacturing and research hub. The Indian pharmaceutical industry is expected to grow at a compound annual growth rate (CAGR) of 22.4 percent to touch US 55 billion dollars by 2020.
The Indian Pharmaceutical market is dominated by generic drugs which constitute nearly 70 percent of the market, whereas Over the Counter medicines and patented drugs make up to twenty-one percent and nine percent respectively.
PHARMACEUTICAL EXPORTS AND ADVANTAGE INDIA
- Pharmaceutical export from India stood at US$ 17.27 billion in 2017-18 and is expected to grow by 30 percent to reach the US $20 billion by the year 2020.
- Exports of pharmaceutical products together stood at US$ 10.80 billion during April-October 2018.
- During April-October 2018, top importers of India’s pharmaceutical* products were USA ( US$ 3.21 billion), UK (US$ 383.30 million), South Africa (US$ 367.35 million), Russia (US$ 283.33 million) and Nigeria (US$ 255.89 million).
- India is expected to rank amongst the top three pharmaceutical markets in terms of incremental growth by 2020.
- India is the largest supplier of generic medicines globally (20 to 22 percent of global export volume)
- India has one of the lowest manufacturing costs in the world. It is lower than that of the USA and almost half of Europe.
Procedure To Export Medicines From India
If you are a registered pharmaceutical company in India then there is an easy process to export medicines from India.
- The first step is to apply for the IEC (Import Export Code) number.
- Contact the exporters of other countries who are interested in importing the medicines.
- Register your product in the country you are going to export.
- Get the approval for export from DCGI (Drug Controller General of India).
- Finalize the shipping method (You need to decide it before you start exporting medicins from India) or you can choose the trader, exporter, supplier of pharmaceutical products.
- Receive the Purchase Order from the company which is importing the medicines from India and send a proforma invoice with product details like type of packing, the rate of the product, freight details, etc.
- Prepare commercial invoice against Letter of Credit or Purchase Order.
- Sign contract with the freight forwarding agency to ship the material to the respective country.
- After completing all the documentation, you need to move to customs clearance. You can do this by appointing an agent to save your time or you can do it on your own.
- After getting clearance, the pharmaceutical products will be shipped to the importing country.
- Customs clearance is required in the importing country too.
How to apply for IEC to export medicines from India
Procedure to apply for IEC Number which is required to export medicines from India
Step 1: Go to the official website of Directorate General of Foreign Trade
Step 2: Click on the ‘Online Application’ tab and select the ‘IEC’ from the drop-down menu.
Step 3: Then choose ‘Online IEC Application’
Step 4: Enter your PAN number to log in and click on Next button.
Step 5: Go to File and choose ‘New IEC Application details’
Step 6: Then a form will appear. Fill all the details in the form and click on ‘Upload Documents’
Step 7: Upload the required documents.
Step 8: After uploading the documents and filling the form, click on the ‘Branch’ button to add any branch details.
Step 9: Then click on ‘Director’ to add the details of the directors.
Step 10: Then click on ‘EFT’ to make an online payment.
Step 11: Fill the amount details, which is Rs. 250 and choose your bank to make a transaction.
Step 12: Then a draft invoice will appear. Check all the filled details and click on ‘Pay now’ button.
Step 13: Make the payment by using your internet banking details.
Mandatory Requirements to apply for IEC Number
- PAN Number
- Current Bank Account
- Bankers Certificate
- IEC Code Number Application Fee
- The hard copy of application containing required documents should reach DGFT RLA concerned within 15 days of its online submission.