India is one of the world’s largest exporters of pharmaceutical goods. The Indian pharmaceutical industry has been ranked third in terms of volume, and thirteenth in terms of value. It boasts of a global manufacturing and research hub. By 2021, the industry is expected to grow at a CAGR of 22.4 percent and touch US 55 billion dollars.
The Indian pharmaceutical market is largely dominated by generic drugs, which constitute over 70% of the market. Over-the-counter medicines and patented drugs make up 21% and 9%, respectively, of the market.
Pharmaceutical Exports and Advantage
- India is one of the largest exporters of generic medicines in the world, exporting 20 to 22% of the global volume.
- The total value of drugs and pharmaceuticals exported during April 2021 to August 2021 was US$ 9.92 billion.
- The total value of drugs and pharmaceuticals exported during FY21 was US$ 24.44 billion, and the monthly average in March 2021 was US$ 2.30 billion.
Procedure to Export Medicines from India
If you are a registered pharmaceutical company in India , you may export medicines from India to other countries.
- First, you must apply for an IEC number with the Indian Import Export Code.
- You can contact the exporters of other countries who are interested in importing Indian medicines.
- register your product in the country or countries that you plan to export to.
- To ship your product to foreign markets, you must obtain a license from the DCGI (Drug Controller General of India).
- It is best to finalize your shipping method before you begin exporting pharmaceuticals. Or, you can choose an experienced trader, exporter or supplier of pharmaceutical products.
- Receive Purchase Order from Company that is importing the product from India. Create and send Proforma Invoice with Product Details, Rate of Product, Freight Details, etc.
- Prepare commercial invoice according to the terms of a Letter of Credit or Purchase Order.
- As per your request, we have signed a contract with the freight forwarding agency to ship the material to the respective country.
- After completing all the necessary government documentation, you need to move to customs clearance. You can appoint an agent to handle this for you or you can handle it on your own.
- After receiving approval from the regulatory agency, pharmaceuticals will be shipped to the importing countries.
- In the importing country, customs clearance is required in the importing country too.
How to Apply for IEC to Export Medicines from India
Step 1: Go to the official website of Directorate General of Foreign Trade
Step 2: To apply for the IEC, click on the ‘Online Application’ tab and select the ‘IEC’ from the drop-down menu.
Step 3: Choose Online IEC Application.
Step 4: Enter your PAN number to log in.
Step 5: Open the File menu and choose New > International Electrotechnical Commission (IEC) Application Details.
Step 6: Once you have filled in the details and clicked on ‘Upload Documents,’ a form will appear.
Step 7: You must upload the required documents.
Step 8: After you have completed the documents and filled out the form, click on the ‘Branch’ button to add any branch details.
Step 9: Then click on ‘Director’ to add the details of your company directors.
Step 10: Click on the ‘EFT’ link to make an online payment.
Step 11: Fill the amount details. choose your bank to make a transaction of Rs250.
Step 12:After that, you will see a draft invoice. Check all the filled details and click on the ‘Pay now’ button.
Step 13: Make the payment using your internet banking details.
Please fill out the form below if you have any questions about IEC
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.
Note: If you are still facing any issues with IEC or have any queries relating to Pharma export. please call our customer service representative at +91-9034152525.