Table of Contents. 1. Pharmaceutical Market of Syria India s Bilateral Trade with Syria... 3

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1 PHARMACEUTICALS EXPORT PROMOTION COUNCIL 101, Aditya Trade Center, Ameerpet, Hyderabad Phone: /66, Fax: E mail: info@pharmexcil.com; website: Status Note on Bilateral Trade of India in Pharmaceutical Products with Syria Table of Contents 1. Pharmaceutical Market of Syria India s Bilateral Trade with Syria Drug Registration Procedures/Requirements of Syria Issues in Pharmaceutical Trade with Syria Suggestions based on Inputs from Members

2 Status Note on Bilateral Trade of India in Pharmaceutical Products with Syria 1. Pharmaceutical Market of Syria As per CIA fact book the GDP of Syria is estimated at $100.7 billion (2009 est.) and population of is estimated at 2,17,62,978 (Jul est.). The country has high proportion of middle aged population, low HIV incidence and high fertility rate. Syrian economic growth slowed in 2009 to 2.2% in real terms as the global economic crisis affected oil prices and the economies of Syria's key export partners and sources of investment. Damascus has implemented modest economic reforms in the past few years. Nevertheless, the economy remains highly controlled by the government. Long run economic constraints include declining oil production, high unemployment and inflation, rising budget deficits, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution. Major industries are petroleum, textiles, food processing, beverages, tobacco, phosphate rock mining, cement, oil seeds crushing and car assembly. Major import partners are machinery and transport equipment, electric power machinery, food and livestock, metal and metal products, chemicals and chemical products, plastics, yarn and paper. The major supplier countries are Saudi Arabia 11.7%, China 8.7%, Russia 7.5%, Italy 5.9%, Egypt 5.8%, UAE 5.7%, Turkey 4.3%, Iran 4.2% (2008). Syria produces around 87% of its pharmaceutical requirements locally. There are more than 50 pharmaceutical companies manufacturing formulations. India is the largest supplier of bulk drugs to Syria valued at 12.08% valued at approx. US$12mn in 2008 and growing at a robust 28% CAGR over as per UN trade statistics database Comtrade. (refer table 1 & 2 below). Table 1: Syria s Top Source Countries for Bulk Drugs (figs. in US$ mn.) Rank Partner Country CAGR % Share 1 India % 28.37% 2 China % 26.85% 3 Belgium % 6.17% 4 United Kingdom % 5.49% 5 Switzerland % 5.01% Syria % Source: UN Trade Statistics Database Comtrade, Pharmexcil Research 2

3 Table 2: Syria s Top Source Countries for Formulations (figs. in US$ mn.) Rank Partner Country CAGR % Share 1 Switzerland % 23.02% 2 France % 15.57% 3 Germany % 11.65% 4 Belgium % 10.62% 5 United Kingdom % 4.83% 6 Austria % 4.51% 7 Denmark % 3.69% 8 Italy % 3.56% 9 India % 3.51% 10 Jordan % 2.32% Syria % Source: UN Trade Statistics Database Comtrade, Pharmexcil Research 2. India s Bilateral Trade with Syria As per DGCIS export statistics available with Pharmexcil, among Middle East countries, Syria is the 7 th largest export destination of Drugs, Pharmaceuticals & fine chemicals from India. The sector s exports to the country stood at Rs crores in the year growing at a Compounded Annual Growth Rate (CAGR) of 10.49% during the five year period from to The country ranks 61 st among major pharma export destinations of India with a share of 0.32%. Nearly 80% of India s exports comprise Bulk Drugs the remaining being formulations (refer charts 1 & 2). 1 The figures from DGCIS & from UN database Comtrade vary as the later has under the list of Bulk Drugs at 6 digit HS level codes commodities which are essentially fermentation and plant based and in case of formulations list of India, HS codes pertaining to surgicals, Devices, AYUSH products, etc. also appear. 3

4 Chart 1: India's Exports of Drugs, Pharmaceuticals & Fine Chemicals to Syria (figs. in Rs. Crores) Chart 2: Composition of India's Exports of Drugs, Pharmaceuticals & Fine Chemicals to Syria ( ) (%) Bulk Drugs 80% Herbals 0% Formula tions 20% Formulations Bulk Drugs Herbals 3. Drug Registration Procedures/ Requirements of Syria Import of medical formulations that are being manufactured in the country is not permitted. It is essential for foreign exporters of formulations to register with SAYDALAYA, for importing pharmaceutical products into Syria. Bulk drugs do not require import registrations and Syrian companies are free to source such APIs. The state owned The Arabian Medical Company & General Establishment for Blood & Medical Industries also import APIs through annual global tender. These two companies are only authorised for import of Antibiotics for public sector. First time exporters are not allowed supply more than 15% of the annual procurement of these companies. There are a total of 5 public sector pharmaceutical companies as per available information. Registering formulations with Ministry of Health throughh General Organisation for the Trade of Pharmaceutical products (SAYDALAYA) need active and close co operation with local representative to ensure registration within a reasonable period. Imports from pre qualified companies especially for oncologies, harmones, cortico steriods, etc. are usually undertaken. A fee of US$150/ is charged by SAYDALAYA as initial evaluation feee and US$250/ is charged as one time registration fees which is valid for 5 years. 4

5 4. Issues in Pharmaceutical Trade with Syria 1. The country majorly imports formulations from European Union and India has a share of meager 2.32% valued at US$5.17 in the country s total imports. As such there is enormous potential to expand India s exports to Syria. 2. The drug regulatory information, laws and other information such as product registrations granted, etc. of the country is available in local language only which raises an entry barrier. 3. The most important trade barrier is stringent regulation of GCC countries which render the market unattractive in view of the cost to returns. 5. Suggestions based on Inputs from Members The country is currently not covered under Focus Market Scheme. In view of its the potential for enhancing pharmaceutical exports of India, this may considered the inclusion into the same. 5