Thanks to the new trade agreement India and the United Arab Emirates signed, Indian pharmaceutical companies can expect significant increases in pharma exports to the latter country. One of the goods that has been incorporated into the Comprehensive Economic Partnership Agreement's vortex is pharmaceuticals.

R. Uday Bhaskar, Director General of the Pharmaceutical Export Promotion Council (Pharmexcil), told BusinessLine that there are numerous benefits that could speed up product approvals and increase demand for Indian pharmaceuticals in the UAE. A dossier submitted by an Indian pharmaceutical company to the UAE could currently take up to 24 months to be approved.

"However, currently, approval is only granted to companies with facilities that have been approved by eight drug regulators, including the USFDA, EMA, UK-MHRA, TGA-Australia, and Health Canada. This significantly shortens the time it takes for a product to be approved, which is positive for exports,'' Bhaskar said. UAE serves as a point of entry for exports to the GCC and Africa, and as a re-exporting nation, it has the potential to increase the market for Indian drugs. The estimated $15 billion GCC market includes $4.6 billion for generic drugs, giving India a competitive advantage. India will benefit from the large number of USFDA (741) and 743 European GMP-approved facilities that are present there.The Pharmexcil DG stated, "The cost advantage our exporters provide along with a strong tradition of product quality and credibility help us to gradually increase presence/consumption of Indian generics in UAE and GCC." India primarily participates in the UAE's generic sector. Despite a $3.5 billion pharmaceutical market in the UAE, its generic market, which includes vaccines, will only be $718 million in 2021. The generic market is anticipated to expand at a CAGR of 7% over the following five years. By 2026, it may have reached $1 billion. It should be noted that the UAE is evolving into a small logistics hub that can support Indian pharmaceutical exporters, the official said.

India's pharmaceutical exports to the UAE have grown at a CAGR of 24% over the last five years, outpacing the UAE's domestic market. However, India also exports pharmaceuticals to other nations for re-export, so data on the actual consumption of India's exports in the UAE are not available. It should be noted that the pandemic contributed inorganically to the 58.4% export growth recorded in FY2020–21 ($322 million), and the CAGR from 2015–16 to 2019–20 was 16.7%. India's exports may have the potential to increase API's much more quickly than they currently do because of their rapidly growing local formulation industry. (only 5 per cent CAGR during the last five years).Formulation exports, which have increased by a CAGR of 48% over the past five years, may see a lower number, according to Bhaskar. The diversification of geographic markets should be a top priority for pharmaceutical exporters, according to one of the company's directors, and the trade agreement with the UAE will serve as a catalyst.