The Indian bioscience industry seems to have been shielded from the far reaching impact of the rupee fall.
With the dollar-rupee parity crossing 66 per USD, there has been a lot of concern on its impact on the industry. The trend on this plummeting reality is mixed. The biotech and pharma companies are export oriented and less dependent on imports.
"The depreciating rupee will result in a gain to these companies in the short term. However, in the medium term as a result of inflation coupled with customer expectation of lower prices, the margins will be under pressure," responded Mr KV Balasubramaniam, managing director, Indian Immunologicals Ltd.,
This sector including the pharma industry accounts for a considerable 11 percent of exports from India. Growing at an average rate of 20 percent (YoY exports) in the last two years. The Ministry of Commerce has set up a target of $25 billion for Pharmaceutical exports for the year 2013-14.
The volatility of the Indian Rupee is a real long-term concern for India now. The movement of currency is a trailing indicator for the stability of the government it represents. Global MNCs in pharma, biotech, and life sciences will hedge its position within India, relative to fellow rapidly emerging nations that clearly indicate a longer-term stability profile.
Adds Mr Nicholas Mitchell, managing director, Phenomenex India, "As one of India's most rapidly emerging sectors (pharma) behind IT and BPO, we must unite to lobby for policy changes that promote stability not only for our sector, but for all of those India is relying upon to advance its position on the global stage."