Pharma exports down on health cost cut in rich nations.

New Delhi: India’s pharmaceutical exports suffered a severe setback in March declining by 21% from a year-ago level as people in the recession-hit countries resorted to cut in their healthcare budgets.

Exports, which contribute a sizeable chunk of the pharmaceutical industry, were down to $650 million in March 2008 from $826 million in the same month last year, according to Commerce Ministry data.

Industry experts feel Indian pharmaceutical exports are feeling the heat of the economic turmoil across the developed world.

“People in developed world are now adopting various methods to cut healthcare costs. They are resisting from taking the full course of medicine, impacting demand in these geographies,” Piramal Healthcare director Swati Piramal said.

Thanks to the robust performance in the first half of FY 2009, the annual pharma exports managed to register 9% expansion at $8.33 billion against$7.65 billion in the previous fiscal.

Rising unemployment rate in the US and Europe have added to the problem of Indian drug exporters. With high rate of job losses, family budget on medicines has been cut, industry officials said.

The number of job losses in the US were over five million since October 2008, while it was more than one million in European countries.