Analysis of Foreign Trade of Pharmaceutical Products and its Impact on GDP

The ongoing pandemic presents a significant chance for the Indian
pharmaceutical industry to show its credentials in production
and testing of vaccines and reinforce its fame. Instances of this
incorporate the Serum Institute of India (SII), the world’s biggest
manufacturer of vaccines by volume. The SII effectively launched
the natively evolved intra-nasal vaccine, Nasovac for the prevention
of H1N1 contaminations and furthermore worked together as
an assembling accomplice for the Oxford-AstraZeneca COVID-19
vaccine. Albeit such opportunities of cooperation evidently appear
to help the area, it’s substitutability with R&D endeavours could
possibly challenge the sustainability of the industry. Another
appropriate problem relates to the nature of the global value chain,
especially the worldwide reliance on China for drug delegate inputs.
The Indian Drug administrative authority had as of late featured how
57 dynamic drug fixings (Api’s) of antibiotics, vitamins and steroids
could go out of stock if there’s a prolonged closedown in China.
The coronavirus pandemic and its resultant lockdown badly
affected all major sectors of the economy, but it has come as a boon
in disguise to the Indian pharmaceutical sector. In the current study,
an analysis of exports and imports of pharmaceutical products for a
period of 10 years has been conducted and the effect of import and
export on the GDP has been analysed.
The study finds that the import and export of pharmaceutical
products are increasing from year to year at the same time the trade
surplus is also getting boosted up. The study has concluded by
saying there is a linear positive correlation between the import and
export, import and GDP and the export and GDP of India.