The Indian pharmaceutical sector’s revenue growth is set to moderate to 7-9% on-year this fiscal from ~10% last fiscal, says Crisil. Exports to regulated markets will be tempered by a high base from advance purchases made last fiscal. Meanwhile, those to semi-regulated markets and domestic sales will remain steady. Goods and Services Tax (GST) cuts will increase affordability for essential medicines.

Operating profitability is expected to be rangebound at 22-23% this fiscal as well. Stable input costs and focus on product launches will help offset the rising cost of compliance and reduced exports of high-margin products to regulated markets. Indian generics have a strong presence in the United States (US) market. This, along with the non-discretionary nature of pharmaceuticals, underpins

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