Abstract

INDIA-ASEAN BILATERAL TRADE: HUGE UNTAPPED POTENTIAL FOR INDIAN PHARMACEUTICAL INDUSTRY

Sagar D. Kore*, Makarand V. Puri and Ram B.L.G.P.

Abstract

India is the fastest growing economy among the major economies in the world. India‟s pharmaceutical industry is estimated to be worth US $ 26 billion which is expected to touch the benchmark of US $ 55 billion by 2020 with compound annual growth rate of 22.4 %. India holds the position of largest supplier of generic drugs (20 % of global export volume) with Pharmaceuticals export figured around US $ 15.329 billion in 2015 with annual growth rate of 7.55 %. The no of USFDA approved manufacturing plants rose to 201 in FY2015-16, up from 109 approvals received in FY 2014-15.India is slated to be in top three pharmaceutical markets till 2020 in terms of incremental growth. India‟s GDP is around US $ 2 trillion which ranks eighth in the world at current prices. Association of south East Asian nations ASEAN is group of nations formed in 1967. This is among the fastest growing trade blocks in the world having US$ 2.4 trillion GDP at current prices which is 3.3 % of the world GDP. ASEAN secure 7.6 % trade in goods ranking fourth in the world & has promising growth rate of 4.7 %.ASEAN‟s global trade has been doubled in last decade. India after economic liberalization in 1991 initiated „Look East‟ policy with a vision of developing trade with eastern nations having major expectation from this group. Look east policy has been transformed into “Act East” under incumbent Government. Recently Free Trade Agreement has been forged to promote trade with this region.

Keywords: India, ASEAN, Pharmaceuticals, Trade.