Indian pharmaceutical firms foresee minimal disruptions in trade with Israel despite escalating regional tensions.
Rising crude prices and export shipping insurance premiums have raised concerns, but the pharmaceutical sector remains optimistic.
Pharmaceutical exports from India to Israel in FY 2020-21 amounted to $32.5 million, which represents only a minor segment of India’s overall pharma exports.
“India’s expansive export market covers over 200 countries, with Israel being a modest component of it,” noted Gagan Manchanda, Co-founder & CEO of health-tech firm Positive Gems.
Bilateral merchandise trade between the two nations touched $10 billion in FY 2022-23, with pharmaceutical exports from India accounting for $92 million.
The Indian embassy in Tel Aviv indicates that India ranks as Israel’s second-largest trade ally in Asia and the seventh-largest worldwide.
Sun Pharmaceuticals, an Indian pharma giant, holds a 78.48 per cent stake in Israel’s Taro Pharmaceutical Industries.
Given the conflict, there’s anticipation of potential disruptions in Taro’s functions, as staff might be summoned for military service in the Israeli defence forces.
However, Sun Pharma has yet to issue any statements on this matter.
Nikkhil K Masurkar, CEO of Entod Pharmaceuticals, commended the resilience of Israel’s robust and well-regulated pharmaceutical sector, which has demonstrated its stability during previous conflicts.
“The current turmoil could amplify Israel’s demand for crucial medicines and further cement the pharmaceutical bond between the two nations.
Simultaneously, India might be poised to cater to a significant rise in pharmaceutical demands from the Palestinian territories,” Masurkar suggested.
While the industry predicts an increase in medicine demand due to the crisis, it doesn’t anticipate a significant spike in exports.
A source from the industry conveyed to Business Standard, “Israel is self-reliant and will likely receive aid, inclusive of medicines, from other developed nations, so the impact on our markets should be minimal.”
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