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September, 2006 Pragati Maidan, New Delhi, India |
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FICCI Survey Suggests The Dynamics
Gulf offers market for Indian drugs
Six nations in the Gulf with a population of over 33 million are all set to emerge as a new market for the Indian drug companies. A survey conducted by FICCI informs that European and US suppliers currently dominate the Gulf market.
Healthcare is one of the leading sectors for exports to and investment in the Gulf Cooperation Council (GCC) countries. There is an urgent need to conduct a product-specific survey in these markets for exports, said the FICCI survey on India’s export potential of pharmaceutical products in West Asia. The GCC countries are Saudi Arabia, Kuwait Bahrain, Qatar, the United Arab Emirates and the Sultanate of Oman. In the 2002 -03, the share of India’s exports of drugs and pharmaceuticals to these countries was Rs 2640 million which is just 2.21 percent of the country’s total global exports in this sector.
The population of the six-nation GCC grew by nearly nine million over the past decade to reach around 31 million by 2000-end, holding tremendous potential for the healthcare sector. These countries have also initiated measures for economic liberalisation and offer opportunities for Indian investors.
FICCI said the market in Kuwait for medical equipment and supplies is estimated at $100 million. The government sector issued 14 licences by the end of 2003 for private investors to open new hospitals and clinics. This could create good opportunity for Indian medical equipment companies. The exports of Indian pharmaceutical products to the UAE also have scope for a significant increase with changes in the UAE health legislation, it added.
Indian drugs and pharmaceutical companies should concentrate on the market for generics, which has vast untapped potential. FICCI said the government and its agencies should prevail upon GCC countries to accept ayurvedic and herbal drug registration. FDA approval to ayurvedic and herbal registration in individual GCC states will reduce the entry barrier, which is high due to custom duty structure.
Indian companies could give a thrust on selling specific medicines in specific medicines in specific market. The industry chamber said as some of these countries purchase drugs, medicines and pharmaceutical products through global tender so Indian companies must keep an eye on these.
FICCI has further suggested that buyer-seller meets in the GCC countries in the above sector should be organised to identify opportunities for trade, besides strengthening marketing infrastructure.
Date: 27-Oct-2004
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