How to export medicines from India to other countries

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 or 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.
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

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.

China also showing interest in importing medicines from India

China is interested in buying medicines from India

China, known as world's manufacturing powerhouse, is moving fast towards a more value-add economy and there is one big industry where the country could dominate the market both as a maker and consumer: healthcare industry.

That is because, in a matter of decades, China rocketed into its position as the world's second-largest economy under a strict one-child policy, contributing to a rapidly aging society with rising there needs.

The pharmaceutical industry is one of the leading industries in China. It is covering synthetic drugs and chemicals, medical devices, hygiene materials, prepared Chinese medicines, pharmaceutical machinery, apparatus and instruments, and packing materials.

According to health-care information company (IQVIA), China was the world's second-largest national pharmaceutical market in 2017 — it was worth 122.6 billion US Dollars. It was also the biggest emerging business market for pharmaceuticals with growth gained from $145 billion to $175 billion by 2022.

China showed interest in buying drugs from India

Chinese officials from Guiyang city expressed their interest in buying medicines form Indian pharmaceutical companies and invited to Guiyang city to discuss on the modalities and issues concerning India's export of medicines to the Chinese markets.

The Pharmexcil has invited pharmaceutical companies of India to utilize this export opportunity to supply the drugs to the Chinese market. It is a long-term opportunity for Indian pharmaceutical companies to sustain a long-term export business.

The committee along with the Indian embassy in China and the department of commerce, government of India were actively working hard with the Chinese government to organize a meeting in Guiyang city which was held on 18-19 October 2018.

When this export opportunity was informed by the Uday Bhaskar, director general of Pharmexcil said:

"Based on our continuous supplication with the Chinese government on various occasions, we have received a communication from the Indian embassy stating that the Guiyang province is interested in buying medicines from Indian companies. This is a great opportunity for the Indian pharmaceutical companies to venture into the Chinese markets."

Below is the letter by Uday Bhaskar, director general of Pharmexcil informing Indian pharmaceutical companies to take this opportunity.

PROCEDURE FOR EXPORTING PHARMA PRODUCTS AND MEDICINES FROM INDIA

Get the IEC (Import Export Code) Number
Appoint distributors or agents, otherwise, you need to register office in the country to export
Register your product in the country
Send products to custom clearance

WHAT IS CUSTOM CLEARANCE?

Customs clearance is an important document that should be obtained when you want to export medicines to China.

You can get by yourself or hire a customs clearance agent. Generate online shipping bill electronically. Thus, the material is moved to the shipping area where custom experts inspect it.

Custom clearance department issues ‘Let Export Order' which means that the shipping bill can be printed.