The pharmaceutical market is anticipated to more than double to US$1.3 trillion, with the E7 countries – Brazil, China, India, Indonesia, Mexico, Russia and Turkey – accounting around for one fifth of global pharmaceutical sales …
Brazil has emerged as India’s largest trading partner in Latin America with bilateral trade crossing the record $ 2 billion mark in 2006. Both the governments have set a bilateral trade target of US $ 10 billion by 2010. Two-way trade between India and Brazil has registered a quantum increase – from a meager US $ 488 million in 2000 to US $ 2.4 billion in 2006.
Geographically, Brazil is 2.6 times as big as India. Its per capita income is five times that of India. The two countries are drawn to each other because they have much to gain from cooperating economically.
Developments in relations between Brazil & Índia
- Brasilia Declaration, June 2003: India, Brazil and South Africa (IBSA) decide to work together
- WTO Meeting: India and Brazil work together on many issues at WTO, in favour of developing countries.
- First Joint Comission Meeting, October 2003, New Delhi. Brazilian Minister of External Relations of Brazil leads Brazilian delegation to India, comprised of officials and businessmen. The two governments decide to enhance their collaboration in many areas.
- Visit of President Lula to India, January 2004. President Lula travelled to India with 97 Brazilian businessmen. Meetings with Indian companies took place and a better commercial relationship was established.
- India signs Preferential Trade Agreement with MERCOSUR in December 2004.
- Governor of Sao Paulo visits India with a large business delegation in November 2005. Governor met PM and visited IITF 2005.
- 2nd Joint Commission Meeting held in Brasilia, on February 1 and 2, 2006.
Bilateral Trade – India x Brazil
|Foreign Trade (all fig. In US $ mil.)|
|Exports to India||
|Imports from India||
The Brazilian pharmaceutical market by value reached R$17.2 billion (US$7.9 billion) between January and September 2006, which represented a rise of 5.4% in local terms over R$16.3 billion (US$6.6 billion) in the same period in 2005. By September 2006, annual cumulative sales grew by 4.0% to R$23.1 billion or by 14.1% to US$10.5 billion, due to price adjustments and currency appreciation. Despite cost-containment measures, there is considerable potential for growth. The current rate of growth is 10.8%.
The market is dominated by branded products, accounting for 88.7% of sales in value terms. However, the share of the prescription sector is lower, at nearly 73%, due to the large over-the-counter (OTC) market. For example, IMS Health valued the market for ‘genuine’ OTC products at just BRL265mn (US$123mn) in 2005.
The generics sector continues to outperform the overall pharmacy sector. Price competition and local practices are diminishing foreign market penetration. The sector is expected to grow once generic production of contraceptives is legally allowed. Enforcement is expected in 2007 and production one year after its approval.
Healthcare sector reform is focused on providing affordable medicines to low-income citizens. A direct system of price controls is applied to all prescription drugs and some OTCs. Brazil has opted out of a patent on Efavirenz, an HIV (human immunodeficiency virus) drug made by US pharmaceutical giant Merck and to import instead a generic version from India. Brazil gets the generic Indian version for as little as 45 cents per pill ( paid US$1.60 per pill earlier). Supplying an HIV patient with Efavirenz for one year costs Brazil $580, compared with $166 for a similar generic drug. Importing the generic drug from India would save $236.8 million by 2012.
Indian and Brazilian companies are pooling in their resources to discover better remedies for pandemics such as TB, malaria which are the scourge of the low-income countries. The Brazilian government has issued compulsory licences to manufacture anti-retroviral drugs. It would result in Brazil, buying generic variants from Indian drugmakers.
Indian companies like Ranbaxy and Dr. Reddy's Laboratories, Strides have made a mark in the Brazilian market. There are 32 Joint-Ventures and Partnerships between 16 major Indian Pharmaceutical companies i.e. Aurobindo Pharmaceutical ltd ,Bilcare , Cellofarm, Claris, Cipla, Dr. Reddys Lab,Glenmark Pharma, Hetero,Unichem Pharma, Intas Pharma, Ipca Ltd, Orchid, Ranbaxy, Torrent, Wockhardt, Zydus Cadilla
For further information about
Indo-Brazilian trade, please visit the website of Consulate General of India in Sao Paulo:
Consulate General of India
Avenida Paulista, 925 7th Floor
Sao Paulo CEP 01300-100